Bid to Create Container Freight Rate Futures Market Gets Mixed Industry Reception, The Journal of Commerce Finds in This Week's Cover Story

NEWARK, N.J., Feb. 16 /PRNewswire/ -- Wild rate swings of the past 18 months have shippers and carriers calling for a way to stabilize the market. In this week's feature story, The Journal of Commerce analyzes whether a "container freight swap agreement" being suggested by Clarkson Securities could be the answer.  

(Photo: http://www.newscom.com/cgi-bin/prnh/20100216/NY55713 )

With container freight rates in the midst of virtually unprecedented volatility, Clarkson Securities -- the London-based derivatives brokerage arm of ship broker Clarksons -- is betting it can develop a market where container carriers and shippers can buy and sell futures contracts based on container freight rates. While bulk shippers and carriers have relied on this model for years to hedge against the risk that rising or falling spot rates might cut into the profit they expect from a particular voyage, no such option exists in the container industry. Now, with the wild rate swings of the past 18 months -- first falling to historic depths during the recession, then rising rapidly since last summer -- shippers and carriers are increasingly calling for a mechanism to bring greater stability to the market.

The Journal of Commerce cover story examines whether the Clarkson Container Freight Swap Agreement might be that mechanism, the company's strategic plan behind it and how the industry is reacting a month after the first trade was launched.

This week's edition of The Journal of Commerce also includes in-depth analysis of the supply chain challenges wrought by the January earthquake in Haiti, firsthand accounts of the unimaginable conditions distribution interests face and the lessons learned from the disaster that will help supply chain interests in future disaster planning. 

To view daily news visit www.joc.com. For all media enquires, including article reprints, please contact Editorial Director Paul Page.

Since 1827, The Journal of Commerce has been the most trusted source of intelligence for international logistics executives to help them plan global supply chains and better manage day-to-day transportation of goods and commodities in the United States and internationally.

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SOURCE The Journal of Commerce