Commodities Trading

Freight

The market for freight trading and forward freight agreement (FFA) trading can be summed up in three words: complex, volatile and overcrowded.

Dry freight trading risks differ from wet freight trading risks, and both are different from the challenges associated with trading derivatives of freight capacity.

Creating operational excellence around voyage charters, voyage calculations and vessel operations is a challenge both for providers and buyers of freight capacity. Strict regulations regarding emissions standards, volatility in bunker fuel pricing and challenges to traditional shipping routes in the form of piracy and overcrowding, pile on the pressure to margins.

The demand for greater efficiency in the entire logistics and freight operation is growing. Baringa works with freight traders and vessel charterers to design efficient business processes across every stage of the freight and shipping value chain. In-depth knowledge of both the challenges facing market participants, and the solutions designed to address them ensures we select and implement the right system for all clients.

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