Shanghai Shipping Freight Exchange has completed the first delivery under its dry bulk capacity forward trading scheme.
On 8 September, Dato Lucky, a Handymax bulker, was delivered to Shanghai-based AMC Shipping, a nickel ores, coal, and steel carrier, at the Chinese port of Yangjiang in Guangdong.
The vessel will be deployed between Yangjiang and the Philippines.
The dry bulk capacity forward trading was developed by Shanghai Shipping Freight Exchange. Unlike the freight forward agreement (FFA), the product is exchange-traded rather than traded over the counter, and involves the delivery of physical shipping capacity.
“The forward contract helped us lock in capacity in advance,” Jia Qipu, director of AMC Shipping, told IHS Maritime. The financial derivative also “helped ensure the implementation of the charterparty contract as deposits are mandatory for the capacity trading at the exchange”.