Carriers

Opinion: Derivatives are a double-edged sword for many shipping companies

Financial instruments are a good tool to protect against fluctuations in freight prices. But it is not without risks, writes Ulrik Uhrenfeldt Andersen.
The so-called FFA contracts are not always the best for shipping companies, writes Ulrik Uhlenfeldt Andersen in his latest column for ShippingWatch. | Photo: Magnus Møller
The so-called FFA contracts are not always the best for shipping companies, writes Ulrik Uhlenfeldt Andersen in his latest column for ShippingWatch. | Photo: Magnus Møller
BY ULRIK UHRENFELDT ANDERSEN, FORMER CEO OF GOLDEN OCEAN AND AVANCE GAS

Since its introduction in the early ’90s, the Freight Forward Agreement, or FFA, has revolutionised the shipping industry, providing a powerful tool for hedging against freight rate volatility. 

Already a subscriber?Log in here

Read the whole article

Get access for 7 days for free. No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

With your free trial you get:

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
    • Must be at least 8 characters, including three of: Uppercase, lowercase, numbers, symbols
    Must contain at least 2 characters
    Must contain at least 2 characters

    Get full access for you and your coworkers

    Start a free company trial today

    Share article

    Related articles

    Sign up for our newsletter

    Stay ahead of development by receiving our newsletter on the latest sector knowledge.

    Newsletter terms

    Front page now

    Further reading

    Jobs