Low in the water

The shipping industry has suffered huge losses in recent months, with the Baltic Exchange Dry Index sinking 94% between May and December last year. What are the knock-on effects for the developing freight derivatives market? Christopher Whittall investigates


Few markets illustrate the dramatic turn of events in the world economy more vividly than shipping. The Baltic Exchange Dry Index (BDI) - which measures the cost of shipping dry commodities such as coal, grain and iron ore - plunged 94% from 11,793 in May to 663 in December, leaving several shipping companies bankrupt.

Associated freight derivatives also took a pounding. The average weekly lots traded of dry bulk forward freight agreements (FFAs) - the standard derivatives contract for dry

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Chartis Energy50 2023

The latest iteration of Chartis' Energy50 2023 ranking and report considers the key issues in today’s energy space, and assesses the vendors operating within it

2021 brings big changes to the carbon market landscape

ZE PowerGroup Inc. explores how newly launched emissions trading systems, recently established task forces, upcoming initiatives and the new US President, Joe Biden, and his administration can further the drive towards tackling the climate crisis

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here