src: campus.hesge.ch
A forward freight agreement (FFA) is a financial forward contract that allows ship owners, charterers and speculators to hedge against the volatility of freight rates. It gives the contract owner the right to buy and sell the price of freight for future dates. FFAs are built on an index composed of a shipping route for tanker or a basket of routes for dry bulk, contracts are traded 'over the counter' on a principal-to-principal basis and can be cleared through a clearing house.
Video Forward freight agreement
References
- Simpson, Spence & Young Shipbrokers: Freight Forward Agreements
- Freight Investor Services: Freight Forward Agreements (FFAs)
- The Baltic Exchange: What is an FFA?
Source of the article : Wikipedia
0 Comments