Shipping derivatives steer the market

Investment managers are no strangers to shipping equities especially in the tanker sector. However, despite enjoying recent publicity, there is less awareness among the investment community of the thriving over-the-counter (OTC) swap derivative market that is regularly traded for dry cargo, and the emerging market that is developing in tankers. Over the past year, total transaction value in the shipping freight market has been in the region of $1.5bn in notional value (i.e. the value of the cont