Freight

    Seaborne trade in bulk commodities remains the backbone of globalisation with more than 11 billion tonnes of cargo carried annually. Freight rates in the dry bulk sector can be extremely volatile, rallying or declining by thousands or even tens of thousands of dollars in days.

    These levels of unpredictability mean that forward price transparency and the ability to manage price risks with financial derivatives are essential tools for any organisation with exposure to shipping rates.

    Contract Specifications

    PRODUCT
    DESCRIPTION

    Time Charter: CPT, CTC, PTC, STC, SPT, HTC, P5TC
    Time Charter Trip: P1A, P2A, P3A,
    P1E, P2E, P3E

    Voyage: C3E, C5E, C7E

    CONTRACT SIZE

    1 day

    1,000 metric tons

    MINIMUM TICK

    US$ 25

    US$ 0.01

    FINAL SETTLEMENT PRICE

     

    The floating price will be the end-of-day price as supplied by the Baltic Exchange.


    All products: Final settlement price will be the mean of the daily Baltic Exchange spot price assessments for every trading day in the expiry month.


    Exception for P1A, P2A, P3A: Final settlement price will be the mean of the last 7 Baltic Exchange spot price assessments in the expiry month.

    CONTRACT SERIES

    CTC, CPT, PTC, STC, SPT, HTC, P5TC: Months, quarters and calendar years out to a maximum of 72 months

    C3E, C5E, C7E, P1A, P2A, P3A, P1E, P2E, P3E: Months, quarters and calendar years out to a maximum of 36 months

    SETTLEMENT

    At 13:00 hours (UK time) on the last business day of each month within the contract series

    Contract Specifications – Options

    PRODUCT
    DESCRIPTION
    Time Charter: OCPM, OCTM, OPTM, OTSM, OPSM, OHTM, O5PM
    CONTRACT SIZE 1 day
    MINIMUM TICK US$ 0.01
    AUTOMATIC EXERCISE Options which are in the money in relation to the Final Settlement Price are exercised automatically.
    FULFILMENT Options are fulfilled by booking in the corresponding futures position at the respective exercise price after the option is exercised.
    CONTRACT SERIES CTC, CPT, PTC, STC, SPT, HTC: Months, quarters and calendar years out to a maximum of 72 months