Back to the futures: New era of container freight hedging begins

container shipping futures

What will happen next year, next month, next week? Rarely has the future direction of markets been as unknowable as it is today, so why take all the risk if you don’t have to?

Players in commodity and securities markets have long used derivatives to curb downside risk and hedge multimillion-dollar positions. But in container shipping, it’s been over a half-decade since participants have had the ability to use cleared, cash-settled futures to offset their risk.

That changed on Monday when futures...

https://www.freightwaves.com/news/back-to-the-futures-new-era-of-container-freight-hedging-begins

Abrupt closure of K-Ratio’s fuel hedging program stuns trucking companies

The abrupt closure of K-Ratio’s fuel hedging program in late June has left trucking companies scrambling as they await answers from the Chicago-based company as to what happened and when or if participating carriers will recoup money owed to them for June settlements and if they will be reimbursed for future fuel swap option contracts they paid cash to lock in fuel prices into 2022. 

K-Ratio is asking carriers that participated in its fuel program to sign a universal settlement agreement,...

https://www.freightwaves.com/news/abrupt-closure-of-k-ratios-fuel-hedging-program-stuns-trucking-companies