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2008 September 10   14:19

Tanker FFA values up 88% at IMAREX

The notional value of tanker derivatives, or forward freight agreements (FFAs), traded via the International Maritime Exchange (IMAREX ASA.) and its clearing partner NOS rose by 88% in August compared to the same period last year.

The Oslo-based exchange said the notional value went beyond the half a billion dollar mark while the number of transactions rose 33% to 1,450.

IMAREX had reported an all-time high in the trading volume of FFAs in April, with 1,666 transactions done, but the notional value then was only $414 million compared to the $519 million traded in August.

“August has been another month of solid growth, with the tanker market performing particularly well,” said Herman W. Michelet, CEO of the IMAREX Group. The total value of all freight derivatives (dry bulk, tankers and options) rose 57% in August compared to the same period last year.  The number of transactions climbed by 29% to a total of 33,390 lots traded.

In the five months to May, IMAREX and NOS handled 7,200 tanker FFA transactions worth $2 billion, indicating a total world-wide tanker FFA market worth up to $12 billion in 2008, according to IMAREX.

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