Maersk Line CEO Eivind Kolding told a JOC Trans-Pacific Maritime conference audience that he wasn't enthusiastic about container derivatives market that Clarkson Securities is trying to develop.
"If people want to have a casino for freight rates, that is their choice ... I don't think there's really a need for it," Kolding said. He added that Maersk isn't taking a position for or against container derivatives but prefers to stabilize rates through long-term contracts instead of hedging on a derivatives exchange. Other carriers at TPM expressed similar views.
Freight derivatives are new for container shipping, but the Baltic Dry Index of bulk rates has been used for years as the basis for buying and selling freight futures contracts for dry bulk cargoes. A Wall Street Journal article suggests that in an era of rising capacity, the BFI could lose some of its importance (the BFI's publisher, the Baltie Exchange, disagrees).
What do you think about a derivatives market for container shipping?