The Tanker FFA Brokers Association FFABA h[ds_preview]as a new chairman. Ben Courtney was elected as successor of Jay Lovell.
Courtney is currently head of tanker derivatives at ICAP Energy. Lovell works for Braemar ACP and has led the group, which represents the worldwide community of tanker FFA brokers for two years.
The new chairman said: »I am delighted to be elected as chairman of the Tanker FFABA at this exciting time for our market. 2017 marks the 20th year since the foundation of tanker derivatives. During my tenure, the FFABA will help principals realise the benefits of off-setting their exposure to turbulent spot prices by locking-in their vessel earnings or freight costs through FFAs.«
His aim would be to spread understanding amongst those physical players who may see themselves as too ‘conservative’ for derivatives but who are in fact exposing themselves to far greater risk, »by not using this long established, widely-trusted tool.«
FFABA in brief
The FFABA describes itself as an independent association of 15 Forward Freight Agreement broking Baltic Exchange member firms formed in 1997. The Association runs regular forums with the Baltic Exchange to promote FFA trading and bring together market participants.
»Since the drop in oil price, freight risk has become an increasingly important element in the commodity cycle. Those hedging continue to seek an off-set for their exposure to unpredictable spot rates while speculators look to FFAs to exploit opportunities creat ed by a more volatile tanker market«, it says.
