Maritime Business Freight Risk Management

Manolis G. Kavussanos and Ilias Visvikis
Additional contact information
Manolis G. Kavussanos: Athens University of Economics and Business

Chapter 15 in The International Handbook of Shipping Finance, 2016, pp 337-370 from Palgrave Macmillan

Abstract: Abstract Due to the volatile nature of the shipping industry in rates and prices, market practitioners attempt to minimize the impact of adverse price movements of freight rates, bunker fuel prices, interest rates and foreign exchange rates, among others, through the use of financial derivatives products.1 This risk management process has enabled companies operating in the industry to stabilize cash flows (revenues and costs), have more effective budgets, secure their shipping loans, and protect their corporate firm values. This chapter presents an overview of the various derivatives products and markets available to hedge the most important source of risk in the industry—namely, the freight rate risk—and to provide the trade specifics, uses and changes in regulations of freight rate derivatives.2

Keywords: Implied Volatility; Future Contract; Freight Rate; Clearing House; Chicago Mercantile Exchange (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-46546-7_15

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137465467

DOI: 10.1057/978-1-137-46546-7_15

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().