Baltic Exchange announced that both SGX and European Energy Exchange (EEX) are now offering new Baltic Handysize futures contracts, providing market participants with dedicated tools to manage their exposure to the Atlantic
Baltic Exchange announced that both SGX and European Energy Exchange (EEX) are now offering new Baltic Handysize futures contracts, providing market participants with dedicated tools to manage their exposure to the Atlantic and Pacific Handysize basin.
The new freight forward agreements (FFAs) are two baskets of Baltic Exchange's handysize timecharter averages made from four Atlantic routes and three Pacific routes, providing forward contracts specific to the basin. The baskets center on physical contracts for vessels that are highly active on corridors for minor bulks, grains and seeds.
The introduction of these new FFA contracts marks the latest step forward in the continued evolution of the dry bulk freight derivatives market, enhancing transparency, liquidity and hedging capabilities developed following industry consultation and market feedback.
SGX launched the HSATC Atlantic contract on June 22, making it the second handysize FFA after it launched a timecharter FFA for seven Baltic routes (HS7TC) in 2021.
EEX launched both the HSATC Atlantic FFA and HSPTC Pacific FFA on 21 September, marking the first time that the exchange has made handysize contracts available to the market. The two new timecharter average Handysize Freight Futures available from EEX will allow more granular hedging opportunities within the Atlantic
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