ICAP has announced the launch of a global Dry Forward Freight Agreement (FFA) Desk, marking an expansion of its freight derivatives activities and broadening access for its international client network.

The newly formed Dry FFA Desk operates with a global structure, reflecting the geographic spread of ICAP’s clients. Brokers are positioned across major freight trading centres, including London, Copenhagen, Dubai, and Singapore. This setup allows continuous coverage across Europe, the Middle East, and Asia, with reach extending to China and Hong Kong.

ICAP Listed Launch of Global Dry FFA Desk Across Key Hubs

The desk is led by Max Nijhawan, who brings experience in freight derivatives markets. Under his direction, the desk will cater to a wide range of participants, including shipowners, operators, mining firms, grain houses, investment banks, hedge funds, and trading houses.

Coverage includes key vessel segments such as Capesize routes (C5TC, C5, C3), Panamax routes (P5TC, P6), along with Supramax and Handysize time charters. The desk is going to facilitate trading and risk management across these segments.

ICAP has also linked the new desk with its existing Dry Bulk physical operations, particularly its presence in Denmark. This coordination is going to provide a more aligned service for clients active in both physical shipping and derivatives markets.

Commenting on the launch, Nijhawan highlighted the role of financial investors in freight markets, noting increased participation from funds. He stated that ICAP’s established relationships and network position the firm to work with both traditional shipping players and financial institutions. He added that the desk’s approach is going to contribute to overall market activity.

Freight markets continue to experience price swings driven by factors such as weather conditions, geopolitical developments, conflicts, and evolving trade routes. With a large share of global trade transported by sea, freight derivatives remain a key tool for market participants managing exposure to rate fluctuations.

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