The freight derivatives market for dry cargo vessels saw a big increase in traded volumes in 2021, according to data released by the Baltic Exchange.
Dry forward freight agreement (FFA) volumes hit 2,524,271 lots, up 61% on 2020. Options trading in the dry market hit an all-time high of 409,255, up 25% on the previous year. The most heavily traded contract was settled against the Baltic Exchange’s panamax timecharter assessment (PTC) which saw 1,202,432 lots traded in 2021.
Tanker FFA volumes were down 16% on the previous year, reaching 553,535 lots. Middle East Gulf to China (TD3C) was the favoured tanker contract with 304,719 lots changing hands.
One lot is defined as a day’s hire of a vessel or 1,000 metric tonnes of ocean transportation of cargo.
Commenting on the figures, Baltic Exchange chief executive Mark Jackson said: “Last year the dry bulk market experienced considerable swings as a result of ongoing supply chain challenges caused by the Covid-19 pandemic.”