Tullett Prebon launches freight derivatives desk

The London-based inter-dealer broker has partnered Capital Shipbrokers in London, Island Shipbrokers in Singapore and MJLF in Stamford, Connecticut. Part of its London ship-broking desk will move to Capital's London office. Tullett will also set up a new ship-broking team in Singapore next month; the team will be based in Island Shipbrokers' offices and headed by Tim Spragg, formerly with Arcadia Petroleum.

Both teams will report to Henry Ann, Tullett Prebon's head of new business.

The new partnership represents a greater commitment to the business, Tullett said in a statement. "Our newly formed partnership will allow Tullet Prebon brokers to benefit from Capital, Island and MJLF’s knowledge of the physical shipping business," said Ann. "At the same, it will provide the customers of the three ship-brokers with valuable hedging opportunities through the use of forward freight agreements and the growing use of options," he added.

Tullett launched a property derivatives desk in July, but the structure of the new freight derivatives operation is more similar to the property joint venture launched in June by broker GFI and property firm CBRE.