First new LPG FFA trades completed

May 05 2021


The first freight derivatives contract using the Baltic Exchange’s recently launched liquified petroleum gas (LPG) assessment (BLPG3) was traded by Gunvor and Vilma and cleared by CME Group last week (28 April).

Clarksons Platou Futures brokered the trade.

 

Providing a USD per metric ton rate for cargoes of 44,000 metric tons moving from the US Gulf to Japan, BLGP3 is a daily assessment published by the Baltic Exchange and its panel of independent shipbrokers.

 

Christian Greenup, LNG & LPG derivatives broker at Clarksons Platou Futures said:

“The BLPG3 route is a welcomed addition to the LPG derivatives market, enabling market participants to take a position in the growing Houston – Asia trade, where the liquidity around the dynamic “take or pay” FOB contracts out of the US Gulf have become a key driver in the global LPG trade of today.”

 

Baltic Exchange Chief Executive Mark Jackson said:

“We’re backing the development of this new market and hope to see it mirror the success of FFAs in the dry bulk and tanker sectors. We have invested significant resources in achieving regulated status and will continue to ensure that our information is audited, verifiable and completely independent.”

 

Peter Keavey, Global Head of Energy at CME Group said:

“We are pleased to see customer support for the new LPG freight futures, which reflect the cost of shipping from the US Gulf Coast to Asia. The surge in exports from the U.S. to Asia has boosted demand for new price risk management tools around its transportation and these new Baltic contracts will help customers better manage their risk in today’s rapidly evolving global gas market.”

 

The Baltic Exchange provides three daily assessments for LPG market covering Middle East Gulf to Japan, US Gulf to Europe and US Gulf to Japan.

 



Related News

NTSB determines cause of grounding of tanker in New Orleans

(Apr 21 2022)

The decision to overtake a tow in a large river bend occupied by multiple vessels during high-river conditions led to the grounding of a tanker and contact with river intake fender systems in New Orleans, Louisiana, the National Transportation Safety...



Latsco partners with Orca AI to increase fleet navigation safety

(Dec 16 2021)

Orca AI, the industry leading AI-based navigation safety platform, has partnered with Greece’s Latsco Shipping Limited, to enable their liquefied natural gas (LNG) fleet to increase its situational awareness and navigate safely on congested waterways...



2 foreign cargo ships collide in Gulf of Kutch Gujarat

(Dec 02 2021)

Two foreign cargo ships collided in the busy shipping lanes of the Gulf of Kutch in Gujarat. Indian Coast Guard ships, including a pollution control vessel, are on stand-by in the vicinity and the situation is being closely monitored.



ClassNK releases “PrimeShip-GREEN/MinPower ver.2.0”

(Nov 16 2021)

Support tool evaluating minimum propulsion power requirement for ships in compliance with latest IMO guidelines.



145th edition of Brown’s Nautical Almanac

(Oct 14 2021)

“The Sailor’s Bible” is now available.



June July 2022

SIRE 2.0 - OCIMF and Columbia Ship Management perspective; seafarer mental health; EU ETS costs; 33 years after Exxon Valdez; resolving BWTS problems