The latest figures compiled from the clearing houses have underlined the continued depth of the market for freight derivatives, both for tankers and dry bulk. According to the Baltic Exchange in 2022, the tanker market saw 734,972 lots traded, up 33% on 2021, whilst dry forward freight agreement (FFA) volumes once again broke the 2m mark, hitting 2,218,249 lots with notable growth in the handysize and supramax sectors. Today these smaller dry bulk markets represent 20% of all dry bulk FFAs traded. In 2020 there were zero handysize FFAs traded.
Commenting on the figures, Baltic Exchange chief executive Mark Jackson said: “2022 was another year of growth for the tanker FFA market and a good performance for dry bulk.”
Przemek Koralewski, head of sales and business development at broker SSY, said: “2023 looks set to be another volatile year, and 2023 has already seen a significant dip in the Baltic Dry Index. In a strongly cyclical sector, having an FFA strategy delivers advantages to market participants.”
