SGX and EEX launch Baltic Handysize futures contracts

The Baltic Exchange has announced that the Singapore Exchange (SGX) and the European Energy Exchange (EEX) are now offering new Baltic Handysize futures contracts. These new freight forward agreements (FFAs) are designed to help shipping companies and traders manage regional risks and protect financial positions within the Atlantic and Pacific Handysize basins.

The contracts consist of two baskets of Baltic Exchange handysize timecharter averages, derived from four Atlantic routes and three Pacific routes. These baskets focus on physical contracts for vessels active in corridors for grains, seeds, and minor bulks.

SGX launched its HSATC Atlantic contract on June 22, following its 2021 launch of a timecharter FFA for seven Baltic routes. EEX launched both the HSATC Atlantic FFA and the HSPTC Pacific FFA on September 21, marking the first time the exchange has offered Handysize contracts. These developments aim to enhance transparency, liquidity, and hedging capabilities within the dry bulk freight derivatives market.