Bumpy ride for freight market

Bumpy ride

Cargo ship and tug boat

In recent months, the freight derivatives market has experienced a resurgence of the extreme bouts of volatility it is renowned for. The market for the largest freight ship available – the Capesize – plummeted from around $40,000 per day at the start of the year to roughly $12,000 per day in July this year, and has rebounded to approximately $30,000 per day in recent weeks, according to industry data.

Market analysts pinpoint Chinese demand for iron ore as a crucial factor driving Capesize volat