derivatives

Commodity radar: They’ve got an awful lot of coffee (shortage) in Brazil…

At Premium we sometimes muse that our subscription fee is the equivalent of the price of a cup of coffee per week. But after an extraordinary year in the coffee markets, with prices doubling from $1.24/lb to $2.36 today, that comparison no longer stands.
The spotlights were on Brazil in 2021, where frost and drought damaged the coffee crop. The weather story was as dramatic a narrative as any Brazilian soap opera …

The post Commodity radar: They’ve got an awful lot of coffee (shortage) in Brazil…

https://theloadstar.com/commodity-radar-theyve-got-an-awful-lot-of-coffee-shortage-in-brazil/

‘Second coming’ for FFAs as protection against ocean freight rate volatility

Largely ignored by container shipping industry since their inception over a decade ago, container freight derivatives are finally seeing increased use as shippers and forwarders seek tools to protect themselves against freight rate volatility.
Derivatives, alternatively known as forward freight agreements (FFAs), have long been an established part of the dry bulk and tanker markets, but for many years remained unused in container shipping.
However, that has begun to change, the extraordinary …

Th...

https://theloadstar.com/second-coming-for-ffas-as-protection-against-ocean-freight-rate-volatility/

Special report: forward freight agreement controversy swirls around Baltic Exchange

Fairplay, the weekly shipping magazine founded in 1883, which sadly is set to publish its last edition and shut its doors next month, is going out with a bang. It has published a special report examining how the forward freight agreements (FFAs) market, which uses the Baltic Exchange as its index, will be affected by the IMO’s low sulphur fuel regulation changes. It’s a long, thorough and important article, but …

The post Special report: forward freight agreement controversy swirls around Baltic...

https://theloadstar.co.uk/special-report-forward-freight-agreement-controversy-swirls-around-baltic-exchange/