Trade News > Maritime News > TPM > Clarksons' Ben Gibson On Derivatives Trading, Freight Rate Volatility (Video)

Clarksons' Ben Gibson On Derivatives Trading, Freight Rate Volatility (Video)

The Journal of Commerce Online - Video

Benjamin Gibson, a freight derivatives broker for Clarkson Securities, in the U.K., talks about derivatives trading in the container shipping industry, why he thinks volatility in freight rates will last a few years, and how index-based carrier contracts are starting to show up in the U.S.

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Rates should be tied to an index - but not derivatives. Cost indexes are more appropriate. Derivatives are subject to speculation and manipulation as noted by what happened to oil futures etc.
More smoke and mirrors are not needed.

- By 105DRVRLI on 11/8/11

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