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SSY Futures supports FFA volume growth

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 2 million mark, hitting 2,218,249 lots.

Taking a closer look at the breakdown of the figures, we saw a very positive growth in the dry bulk handysize and supramax sectors. Today these markets represent 20% of all dry bulk FFAs traded. In 2020 there were zero handysize FFAs traded.

This is a market which SSY Futures has been working to grow and we are very proud of this development. We have introduced many new participants and we feel rewarded by the level of enquiry SSY Futures is receiving from owner operators and charterers: this trend looks set to continue into 2023. It is all too easy to focus solely on the capesize and panamax segments, but as a big full-service broker with physical and futures teams working in lockstep, we see the smaller vessel sizes as a key part of our offering.

2023 looks set to be another volatile year, and 2023 has already seen a significant dip in the Baltic Dry Index. In strongly cyclical sector, having an FFA strategy delivers advantages to market participants.

* Przemek Koralewski, Head of Sales and Business Development at SSY

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