Freight
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 | Time Charter: CPT, PTC, STC, SPT, P5TC, H7TC Time Charter Trip: P1A_82, P2A_82, P3A_82, P1E_82, P2E_82, P3E_82, P6_82 | Voyage: C3E, C5E, C7E |
| CONTRACT SIZE | 1 day | 1,000 metric tons |
| MINIMUM TICK | US$1 | US$ 0.01 |
| FINAL SETTLEMENT PRICE
| The floating price will be the end-of-day price as supplied by the Baltic Exchange.
Exception for P1A_82, P2A_82, P3A_82: Final settlement price will be the mean of the last 7 Baltic Exchange spot price assessments in the expiry month. | |
| CONTRACT SERIES | CPT, PTC, STC, SPT, P5TC: Months, quarters and calendar years out to a maximum of 72 months C3E, C5E, C7E, P1A_82,P2A_82, P3A_82, P1E_82, P2E_82, P3E_82 : 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 | |
Contract Specifications – Options
| PRODUCT DESCRIPTION | Time Charter: OCPM, OPTM, OPSM, OP5M |
| 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 | CPT, PTC, STC, SPT: Months, quarters and calendar years out to a maximum of 72 months |
*Available as of June 26th 2023