Published: April 2021
The special features and characteristics of all available freight derivative products are compared and contrasted between them. Practical applications of derivatives are showcased through realistic practical examples, while a number of concepts across the contents of this book appear for the first time in the literature. The book also serves as “the reference” point for researchers in the area, helping them to enhance their knowledge of risk management and derivatives in the shipping industry, but also to students at both undergraduate and postgraduate levels. Finally, it provides a comprehensive manual for practitioners wishing to engage in the financial risk management of maritime business. This second edition has been fully updated in order to incorporate the numerous developments in the industry since its first edition in 2006. New chapters have been introduced on topics such as Market Risk Measurement, Credit Risk and Credit Derivatives, and Statistical Methods to Quantify Risk. Furthermore, the second edition of this book builds upon the successful first edition which has been extensively (i) taught in a number of Universities around the world and (ii) used by professionals in the industry.
Shipowners, professionals in the shipping industry, risk management officers, credit officers, traders, investors, students and researchers will find the book indispensable in order to understand how risk management and hedging tools can make the difference for companies to remain competitive and stay ahead of the rest.
Table of Contents
1. Introduction to the shipping markets and their empirical regularities
2. Business risks analysis in shipping and traditional risk management strategies
3. Introduction to financial derivatives
4. Freight market information and freight rate indices
5. Freight rate derivatives
6. Applications of FFAs, pricing and risk management of FFA positions
7. Applications of freight options
8. Market risk measurement and management in shipping markets
9. Bunker price derivatives
10. Vessel value derivatives
11. Foreign exchange derivatives
12. Interest rate derivatives
13. Credit risk and credit derivatives
14. Statistical tools for risk management in shipping
