FIS

Shipping Companies Utilize FFAs Against 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, reports The Load Star.

Forward freight agreements

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,...

https://mfame.guru/shipping-companies-utilize-ffas-against-freight-rate-volatility/

Fears air freight rates may soar even higher as tech launches loom

Air freight rates could see further increases as forwarders report an up-to-four-week wait for ocean freight bookings from China to Europe.
While transpacific ocean freight is enjoying more capacity, the westbound trade is expected to get “a lot, lot worse”, which could cause a knock-on effect in air freight as frustrated shippers look to move goods faster.
Air prices have been rising for the past fortnight and there are concerns among shippers …

The post Fears air freight rates may soar even...

https://theloadstar.com/fears-air-freight-rates-may-soar-even-higher-as-tech-launches-loom/

Sea-air services make a comeback, but volatility and uncertainty lurk

The sea-air business via Dubai and Singapore is back up and running, as air freight rates continue to stabilise.
Aeromar Sea Air, which suspended its business in March when air freight rates skyrocketed in Asia as passenger aircraft stopped flying, said it was re-introducing services.
“We still have some limits on capacity, but there is enough to offer a professional service; so we are back,” said managing director Nick Coverdale.
“Rates are stable, …

The post Sea-air services make a comeback,...

https://theloadstar.com/sea-air-services-make-a-comeback-but-volatility-and-uncertainty-lurk/

Trade with us on Thursday 16 April and help fight Coronavirus!

14 APRIL 2020

FIS is bringing forward its annual Charity Day to Thursday 16 April. We will donate all commissions received that day to medical and welfare services in the US, Europe, Dubai, Singapore, India, Singapore and China fighting #Coronavirus. Please join us!
FIS, its staff and clients have all been affected to a greater or lesser extent by the virus and this is an opportunity to show our support for the professionals …

The post Trade with us on Thursday 16 April and help fight Coronavirus!

https://theloadstar.com/trade-with-us-on-thursday-16-april-and-help-fight-coronavirus/

FIS plans annual charity day for 16 April, all commissions to go to NHS

FIS has decided to bring forward its annual Charity Day to Thursday 16 April and donate all commissions received that day from futures and options trading to organisations leading the fight against the Coronavirus.
FIS, its staff and clients have all been affected to a greater or lesser extent by the virus and this is an opportunity to show our support for the professionals that are treating patients, keeping supplies moving …

The post FIS plans annual charity day for 16 April, all commissions...

https://theloadstar.com/fis-plans-annual-charity-day-for-16-april-all-commissions-to-go-to-nhs/

Futures Contracts To Enable Charterers Hedge Bunker Fuel Risk

Freight Investor Services is helping shipowners hedge their bunker fuel risk ahead of the IMO 2020 deadline, brokering the first futures trade on the SGX Platts Marine Fuel 0.5% FOB Singapore Index.

FIS in the forefront

The trade, concluded for the March 2020 contract at $503 per tonne, once again puts FIS at the forefront of bringing to the market new products that enable our international customer base to hedge their physical commodity risk exposure.

“The volatility and price risks for shipping...

http://mfame.guru/futures-contracts-to-enable-charterers-hedge-bunker-fuel-risk/

Monthly Panamax Technical Report

  • Technically the index remains in a trending environment with resistance starting at USD 17,588.
  • The RSI is overbought at 90, however again this is expected when markets enter long term trend. Pullbacks remain bullish above USD 11,469 with wave analysis suggesting that downside moves should hold at or above support levels. 
  • The August futures remain technically bullish in what looks to be a wave 3 in terms of Elliott wave suggesting technical pullbacks should be into support. 
  • A close below...

http://mfame.guru/monthly-panamax-technical-report/

What You Need To Know: Panamax P8 FAQs

In an effort to help traders and users familiarise themselves with the new Panamax P8 route, Freight Investor Services has put together some brief FAQs.

Why is FIS offering the Baltic P8 Route?

We have always believed that new routes provide a great opportunity for additional liquidity in the FFA market. The P8 route represents a hedging and trading opportunity on a new route that has shown strong growth and positive fundamentals.

FIS Shanghai office is receiving growing demand an inquiry from the...

http://mfame.guru/what-you-need-to-know-panamax-p8-faqs/

FFA Market Traces Back to Its Route Through Brazil-China Grain Trade

  • FFA market goes ‘back to its routes’ with the launch of cleared futures contract enabling users to hedge booming Brazil-China grains trade.
  • New route offers shipowners and grains market players on the key Brazil-China soyabeans route a complementary method to the existing Panamax P2A route.
  • Current pricing of $32.042/tonne FIS estimates that each P8 trip carries approximately $2m of unhedged freight risk.
  • The market for seaborne transport of soyabeans is approximately 150m tonnes per annum,...

http://mfame.guru/ffa-market-traces-back-to-its-route-through-brazil-china-grain-trade/

FIS Broke First Futures Trade on CME Singapore FOB Marine Fuel

In a major development FIS has announced that they have executed the first trade on the new Singapore FOB Marine Fuel 0.5% Futures contract specs, reports Freight Investor Services.

How did it happen?
  1. The FIS bunker desk brokered the deal on a spread basis for December 2019 Singapore 0.5 %.
  2. Fuel Oil versus December 2019 Singapore 380 spread at $200.
  3. The futures trade is the first to be made on the Platts 0.5% spot Singapore index that began publication in January 2019.
  4. Physical trading remains...

http://mfame.guru/fis-broke-first-futures-trade-on-cme-singapore-fob-marine-fuel/