The European Energy Exchange (EEX) will introduce two new time charter average Handysize Freight Futures on 21 September to allow more granular hedging opportunities within the Atlantic and Pacific basins.
The new contract suite will cover four Atlantic (HS1-4_38) and three Pacific routes (HS5-7_38).
Steffen Koehler, CCO of EEX, comments: “Against the fast-changing geopolitical backdrop of this year, the dry bulk freight markets have become more important than ever and the impact of regional conflicts can also be noted in this segment. By adding these new contracts for the specific routes in the Atlantic and separately
in the Pacific, we strive to bring not only more trading opportunities but also more accurate hedging tools to the trading community.”
Handysize freight futures are predominantly used to track smaller bulk commodities, such as agricultural products, predominantly grain.
EEX’s dry bulk portfolio already includes a Handysize freight future product (H7TC) covering both ocean basins in one, in addition to time charter contracts for Capesize, Panamax and Supramax freight as well as financial futures for Capesize voyage route freight.
For the month of August, EEX reported a 38% Year-on-Year growth in terms of traded volume on the overall freight derivatives market (102,465 lots), including a 43% increase (to 100,410 lots) compared to the previous year’s in freight futures.
The European Energy Exchange (EEX) is a leading energy exchange which builds secure, successful and sustainable commodity markets worldwide – together with its customers and partners. As part of EEX Group, it serves international power, natural gas, environmental, freight and agricultural markets, and provides data, reporting and registry services. EEX is an enabler of the energy transition and decarbonisation, advancing renewables integration through dedicated products and services, including those related to guarantees of origin.
