New Baltic Handysize futures contracts now listed on SGX and EEX

Baltic Exchange has announced the listing of new Baltic Handysize futures contracts on both SGX and EEX. These contracts offer market participants specialized tools to manage their exposure in the Atlantic and Pacific Handysize basins. The new Freight Forward Agreements (FFAs) comprise baskets of Baltic Exchange's handysize timecharter averages, sourced from four Atlantic and three Pacific routes.

The contracts focus on physical contracts for vessels heavily involved in minor bulks, grains, and seeds transit. This addition to the dry bulk freight derivatives market enhances transparency, liquidity, and hedging capabilities, following industry consultation and market feedback. SGX introduced the HSATC Atlantic contract on June 22nd, making it the second handysize FFA after launching a timecharter FFA for seven Baltic routes in 2021.

EEX brought forth the HSATC Atlantic FFA and HSPTC Pacific FFA on September 21st, marking the first time the exchange offered Handysize contracts to the market. These new timecharter average Handysize Freight Futures on EEX enable more precise hedging opportunities within the Atlantic and Pacific basins, allowing traders to isolate their exposure to pricing fluctuations in other trading corridors.

The launch of HSATC and HSPTC contracts with EEX, following similar new contracts on SGX, exemplifies the expanding global FFA market, as shipping companies and traders seek to hedge regional volatility and optimize financial positions. Mark Jackson, CEO of Baltic Exchange, highlighted the significance of the new Handysize FFA contracts, stating that they provide traders and brokers with additional risk-management tools, a benchmark reflecting regional market conditions, and demonstrate the market's demand for targeted solutions.