During a recent webinar hosted by the Baltic Exchange and the Institute of Chartered Shipbrokers, Professor Nomikos of The Business School highlighted the transformative role of Forward Freight Agreements (FFAs) in the shipping industry. He emphasized FFAs’ potential in risk management and as a burgeoning investment class, advocating for their broader adoption amidst the industry’s navigational shift towards decarbonization and net-zero objectives.
Emerging Investment Frontiers in Shipping
Nomikos pointed out the growing interest from outside investors in shipping as a novel asset class, driven by the search for diversified investment opportunities. Shipping, with its unique characteristics and significant role in global trade, offers an intriguing narrative, especially in the context of environmental, social, and governance (ESG) investment opportunities. The advent of FFAs provides an accessible entry point for investors, promising increased market participation and capital infusion from the investment community.
Addressing Volatility with Innovation
The extreme volatility of freight rates, sometimes surpassing the unpredictability…
