EEX continue to Drive Freight Forward in 2021
We’re very proud to announce that EEX has set a new all-time record in Dry Freight, achieving a 42% uplift in volume for the first half of 2021. In the period January to June 2021, a total volume of 598,300 lots were traded (H1 2020: 422,244 lots) which is the highest volume ever recorded in a 6-month period, since launching the business in 2016. The new H1 record follows an 18-month period of sustained organic growth for our Dry Freight business, which has seen us also gain the majority share of Open Interest in the combined Dry Freight market worldwide. None of this would be possible without you, our customers and partners. On behalf of the entire team, thank you for your continued belief and support.
The first half of 2021 has been incredibly productive - in addition to increasing volumes, we’ve also recently expanded our Dry Freight portfolio with the launch of Handysize 7TC Freight Futures. Following a period of strong growth in the charter market, the new Handysize contracts, which launched in April, help our customers manage their exposure by enabling them to clear Forward Freight Agreement (FFA) trades for the 38,000-dwt Handysize Time Charter basket of routes.
For a full overview of our performance to date this year, make sure to check out our latest Market Update which is available here.
EEX Zero Carbon Freight Index – Available NOW!
As you may have seen in the press, in July we launched the EEX Zero Carbon Freight Index (ZCFI) which enables players in the Dry Freight market to see, for the first time, how the cost of carbon emissions could affect freight prices.
Last month, the European Commission unveiled plans to extend the EU ETS to the maritime sector from 2023 onwards, meaning ship owners and operators will be required to take part in the EU Emissions Trading Scheme (ETS). As a consequence, the shipping industry will now have to factor in the cost of carbon when conducting voyages that call at EU ports. By referencing the ZCFI, market participants will have a new reference point, which they can use to calculate the cost of their carbon exposure, thereby giving a clearer, more indicative picture of their overall transportation cost.
The new EEX Zero Carbon Freight Index calculates the synthetic price of daily FFA time-charter rates for both Capesize and Panamax vessels, which are adjusted for the cost of carbon. Price information is taken from the highly liquid EEX Dry Freight FFA market which is then combined with EEX EUA Futures to create a daily “Zero Carbon FFA” rate which reflects a 100% carbon reduction. You can access the EEX Zero Carbon Freight Index via eex.com or by the: EEX Daily Freight Market Update Report.
NEW: Argus Biomass Index White Paper
Liquidity underpinning the Argus cif NWE and other key industrial wood pellet prices has continued its steady increase in recent times, as market participants become increasingly willing to contribute to and use Argus prices.
In the 10 quarters leading up to the third quarter of this year, average quarterly fixed price trade volumes reached nearly 70,000t, up by more than 50% on the equivalent period from the third quarter of 2016 to the fourth quarter of 2018. For a full overview of the Argus Biomass Index, download their latest whitepaper here.
Talking Sustainability on Talking OTC Commodities
Decarbonization of the shipping value chain is already well underway and will continue to be front and centre for ship owners, charterers and financiers in the decade ahead. As one of the world’s leading exchanges in freight and emissions trading, EEX has been championing the move to decarbonized shipping for some time and is fully committed to supporting the industry’s journey as it transitions to a more sustainable future. In addition to the recently launched EEX Zero Carbon Freight Index, we have also recorded two podcasts which specifically address the topic of sustainability in shipping. If you didn’t get the chance to listen to them first time around, just click on the links below!
25kChallenge – Completed!
We did it!
We are thrilled to announce that together, we have managed to collect 25,000 kilometres by cycling, running and swimming. Thank you to everyone who took part in the challenge – we really appreciate your support.
For every kilometre achieved EEX Group will donate 1€ for a good cause around the world. We will support the two organizations with the most votes with 12,500€ each.