Dry Freight

Dry Bulk Freight (FFAs) | Containers (CFSA)

Dry freight derivatives, which are listed on Cleartrade Exchange, include Forward Freight Agreement (FFA) and Container Freight Swap Agreement (CFSA).  These instruments are settled against various freight rate indices  published by Baltic Exchange, Shanghai  Shipping Exchange and the World Container Index.

Freight derivatives are primarily used by shipowners and operators, oil companies, trading companies, and grain houses as tools for managing freight rate risk. Speculators are most often represented by traders in investment banks.