The 2020 pandemic increased traded volumes concerning the freight derivatives markets, for both tankers and dry cargo vessels, according to the Baltic Exchange.
Accordingly, the Tanker Forward Freight Agreement (FFA) volumes were up 31% on the previous year, reaching 603,261 lots, with a daily record of 33,677 lots achieved on 16 March at a time when Time Charter Equivalent earnings for VLCCs exceeded USD 275,000.
In addition, the dry FFA volumes hit 1,548,127 lots, up 17% on 2019, while the options trading in the dry market hit an all-time high, up 37% on the previous year to 318,183.
Concerning the figures, Baltic Exchange Chief Executive Mark Jackson stressed that 2020 remained an impressive year for the freight derivatives market, commenting that volatility boosted the increase in the market.
Concluding, Mr Jackson stated that last year both the dry bulk and tanker markets experienced big swings amid the IMO 2020 fuel change, collapse in oil price and Covid-19 pandemic. The previous 12 months saw 1.5 million dry FFAs traded, representing growth of around 70% since 2012.
