Since paper freight-hedging tools were introduced to counter volatile tanker freight rates, the hesitant uptake of tanker Forward Freight Agreements (FFAs) has been attributed to traditional risk seeking propensities amongst tanker owners, naturally reluctant to hedge against risk. To test how far the well-documented generic determinants and incentives for corporate hedging could explain this hesitation in the tanker market, the attitudes of tanker owners and charterers towards freight hedging, risk and perceptions of FFAs, were surveyed. Although FFAs were widely viewed as an important development, some respondents were unaware of their function and a majority had not used them. The link between freight hedging activity and participants' risk aversion was not clear-cut, but with market liquidity critical to raising FFA usage improved technical education is essential to widespread acceptance


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Tanker forward freight agreements: the future for freight futures?


    Contributors:

    Published in:

    Publication date :

    2003-01-01




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    Unknown




    Forecasting tanker freight rates

    Velonias, Platon M. (Platon Michael) | DSpace@MIT | 1995

    Free access



    Spillover effects and dynamic correlations between spot and forward tanker freight markets

    Li, Kevin X. / Qi, Guanqiu / Shi, Wenming et al. | Taylor & Francis Verlag | 2014