Capesize Options Lift Dry FFA Market in April

April 2015 was the busiest month of the year for the dry bulk freight derivatives market, according to the figures compiled by the Baltic Exchange.

In excess of 140,000 lots were traded in the Forward Freight Agreement (FFA) and options markets, a 60% increase on average volumes for the first three months of 2015.

Out of 44,430 total options, 40,260 were Capesize options, 4,050 Panamax, and 120 Supramax options.

Commenting on the rise, Baltic Exchange Chief Executive Jeremy Penn said: ”Unlike previous rises in the FFA market, this has come against a backdrop of very low spot rates in the physical shipping market. Much of the rise was driven by a surge of interest in Capesize options, 40,000 of which were traded in April.”