The market

The principal dry bulk sea-borne commodities are grain, coal and ore. The dry bulk freight market increasingly resembles a commodity or financial market whereby the notional forward value of freight can readily be bought and sold.

A futures, swaps and options market has grown up to provide price risk management tools to this sector of the shipping industry. Innovative commercial management is essential to maximise returns in this highly competitive sector where trading and price risk management skills are at a premium.