The derivatives market for clean and dirty tankers saw increased traded volumes in 2022, according to data released by the Baltic Exchange.

Tanker Forward Freight Agreement (FFA) volumes hit 734,972 lots, up 33% on 2021.

Dry Forward Freight Agreement (FFA) volumes reached 2,218,249 lots, down 12% on 2021. Handysize volumes continued to grow following changes implemented to the Baltic Exchange’s Handysize Index in 2020. Options trading volumes in the dry market were 395,163. 

Commenting on the figures, Baltic Exchange Chief Executive Mark Jackson said:

"2022 was another year of growth for the tanker FFA market and a good performance for dry bulk. Underpinning these volumes are world-class clearing, volatility, trust in the Baltic Exchange’s settlement data and increased participation by owners, charterers and traders. The Baltic Exchange's status as a regulated benchmark provider has helped to create a mature and liquid market.”

He added: 

"Tanker market volatility has largely been caused by Russia's invasion of Ukraine and volumes jumped significantly after war broke out. This was seen across all sizes and sectors from VLCCs down. 

"The most liquid dirty route was the VLCC route Middle East Gulf to China (TD3C), but TD20 (Suezmax) contributed volume too. There were good levels of activity on the clean routes with MR TC2, TC14 and the LR1 route TC5 all contributing significantly. We were also pleased to see continued volume growth in the handysize segment following the change in our vessel description to a 38,000 dwt type."

For further details please contact Alex Wood, Navigate PR.

E: awood@navigatepr.com

Notes to editors

The Baltic Exchange represents a global community of shipping interests. These include shipowners, charterers and shipbrokers who are collectively responsible for handling a large proportion of the world’s dry cargo and tanker fixtures, freight derivative trades as well as the sale and purchase of merchant vessels.

The Baltic Exchange is regulated by the UK’s Financial Conduct Authority (FCA) pursuant to the EU Benchmark Regulation. It is the trusted provider of data for the settlement of physical and derivative freight contracts, underpinning risk management tools for the shipping and transportation markets.

Founded in 1744, the Baltic Exchange is headquartered in London with regional offices in Singapore, Shanghai, Athens, Stamford and Houston.

In 2016 the Baltic Exchange was acquired by Singapore Exchange ("SGX").

Baltic Exchange services:

•    Daily benchmarks for dry, wet, container and gas freight markets
•    OPEX, S&P, ship recycling & forward assessments
•    Air cargo assessments
•    Escrow and dispute resolution support
•    Executive training via the Baltic Academy
•    Networking for shipping professionals