Effectiveness of forward freight agreements in mitigating VLCC shipowners' business risks between 2005 and 2014

• Main Author: Chng, Wen Xin
• Other Authors: Soh Woei Liang
• Format: Final Year Project
• Language: English
• Published: 2016
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/67140
• Institution: Nanyang Technological University

This report investigates if the volatility of tanker spot rates are able to compensate shipowners for their cost obligations, justifying the need for a hedging tool. Subsequently, the accuracy of the paper hedging tool, Forward Freight Agreement (FFA), through its predictive mechanism is explored. T...