Dry Cargo

2021 record year for dry freight derivative volumes

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.”

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
Back to top button