Freight
Physical
Brokerage
TFS brokers are equipped to handle all sizes of drybulk shipping from Handysize to Capesize. Each broker or team of brokers is client focused, and further specialized by area, size and/or commodity. With offices strategically placed in different time zones, TFS keeps fully informed of market swings and news. By working with the Forward Freight Agreement (FFA) desk, clients can access the necessary risk management tools for the highly volatile freight market.
Operations
TFS Freight's experienced operational staff is available 24-hours a day in order to ensure a smooth completion of every charter party from beginning to end.
Charter Party Department
The TFS charter party department is dedicated to providing the essential legal documents for signing with speed and diligence. It is TFS's priority to have charter parties mailed within one week.
Freight Derivatives
FFAs are now part of the host of derivative products that TFS provides. FFAs are an over-the-counter swap agreement based on the Baltic Exchange Freight Indices and cash settled at the end of every calendar month. TFS is a member of the FFABA (the Baltic Exchange FFA Panel).
TFS is committed to providing the best risk management tools and solutions to all freight market participants. TFS has FFA brokers in London, Australia and Singapore to service the major shipping market sectors. A collaborative effort between these offices provides value-added information to its clients.
To request more information, please contact the desks at the below numbers or send an e-mail to freight@tfsbrokers.com.
| London: | +44.207.550.1801 |
| Melbourne: | +61.3.9614.2065 |
| Perth: | +61.8.9201.0545 |
| Stamford: | +1.203.351.1580 |
| Singapore: | +65.6223.0106 |
Freight: Market Background
The Baltic Dry Cargo Routes cover all major trade routes for coal, grain and iron ore and are highly correlated with the physical market. Cargo and ships sizes covered are Capesize, Panamax and Handymax. Secondhand ship values are also quoted as part of the Baltic Indices.
TheFFA market has exploded in volume over the over the last three years with physical market volatility of between 50% and 80%. It is estimated that the FFA market will grow on the dry and wet side by between five and ten times the size of the physical market, which is roughly five billion metric tons of dry cargo moved by sea annually.
Charterers owners and traders now actively participate in this market and utilize FFA as part of their core risk management tools.