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【零⑧零⑻★福娃爱上井趴趴】求助~哪位英语好的亲帮下忙!找下错 谢谢亲们帮个忙类~~~找下有啥语法错误!!!The Influence of FFA in Shipping MarketWhat is FFA?FFA is the “Forward Freight Agreements” for short. Generally speaking, FFA is an agreement of freight at a specified future date that is approved by the buyer and the seller. Specified line, price and quantity are stipulated in the agreement which also conclude a promise of two parties at sometime in the future that one must charge the difference between the stated price and BDI price while the other must pay it. Therefore, FFA is a derivative of the freight in finance. The agreements aim to approve a shipping contract at a future between the consignor and the carrier that control the risk of freight.Simply, FFA is a gambling of low or high price in the future. Take an example. A consignor entered into a contract of a specified time with a carrier that stipulates the price and the quantity of cargo on one line. By the time, if true price is higher than the stipulated price in the market, the consignor will win the gambling and save handling cost. To the contrary, unfortunately the consignor must pay it for his wrong judgement.How it comes?Actually, FFA market is powerful tool for corporation against risk. In consideration of supply of cargoes, shipping companies hope selling bunks on one line in advance. Just chime in easily, the consignors worry about market quotation’s constantly jumping. So they would like to sign a contract nearby in order to control the freight in the future within a range accepted. This business accepted by two parties can cut off cost and reduce trading risk.How to operate?For instance, a finance corporation signed a contract of FFA. The contract stipulated that the rent of transportation is $10,000 per day from atlantic ocean to far east on August, 2008. With the market continually rising, the rate sets in to $20,000 per day. Finally, the company can earn $600,000 from FFA through change into cash .What’s the influence of FFA in shipping?The charm of FFA is the profit that is brought from the difference in changefully shipping freight. Now prosperous foreign trades make the enterprise involved change into third party or financial institution from simplex carriers and consignors. These institutions which have not cargoes and vessels, such as banks and hedge fund company, just buy or sell the freight in FFA market through using their solid capital. More and more corporations start to participate in FFA market, while more and more international speculators pay their attention on it. The symptom of gamble is appearing. If FFA market is higher than the true by somebody, the whole market will be exposed to a huge loss. Those financial companies holding solid capital distort the true situation in FFA and achieve their intention of arbitrage through the ways working on BDI price in FFA market such as manufacturing inveracious a relation between supply and demand, even not hesitating to leave many vessels unused only to form a strained gloss on transportation in spot market. Nevertheless, the relation may not be lasting for a long time. Once the hot FFA market appears a universal falling, a majority of shipping company will return their gain rapidly. Thus the whole shipping industry will be inflicted heavy losses on.CHINA and FFAThe volume of FFA trades has significantly increased over the past few years. This demand has been promoted by both an increase in volatility and international business. But Chinese businesses are composed of many small businesses that are made by a lot of medium-sized and pint-sized consignors. As their small sum per trade, little quantity and lack of power to assume the risk, they often submit the cargoes for shipping company to transport in spot market. Therefore, they can but accept passively the freight of international shipping market. Face to such embarrassed complexion and shipping market huge volatility, Chinese owners and charterers should make good use of FFA , the new risk management tool, for hedging. But the trade of derivative in shipping has one hand on venture. So the risk in FFA can not be ignored. Today, learning the knowledge of FFA is very important for a shipping man.
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