01/06/2020 | Press release | Distributed by Public on 01/06/2020 03:52
Clarksons is pleased to announce that on 23 December 2019, it completed the first LNG freight futures trades on CME between commodity traders Vitol and Trafigura.
The trade was a Q1 2020 spread between BLNG1 Gladstone to Tokyo RV and BLNG2 Sabine to Isle of Grain RV taking place just hours after the products launched on CME Group. Three LNG freight futures (BLNG3 Sabine to Tokyo via Panama canal being the third) are now listed on CME Group and are based on the Baltic Exchange assessments.
Christian Greenop, who led the transaction from Clarksons FFA team, said, 'We have seen an increase in demand from market participants wishing to manage freight exposure within LNG. In 2019, 160,000m3 TFDE tonnage traded in the single voyage market in the low $10,000/day RV basis during April and broke the $170,000/day RV basis mark in October, so a risk management tool is particularly useful given this level of volatility'.
Global seaborne trade in 2019 was 356 million tonnes and is set to grow by ~11% in 2020 (395 million tonnes) of which ~30% is traded in the spot market. It is hoped that the LNG freight futures will not only facilitate risk management but also offer transparency in an otherwise opaque market.
For further details contact:
Clarkson Platou Futures Limited
T: +44 20 7334 4705 | M: +44 792 045 4705
Tel: +44(0) 20 3757 4983 / 4994
About Clarkson PLC
Clarkson PLC is the world's leading provider of integrated services and investment banking capabilities to the shipping and offshore markets, facilitating global trade.
Founded in 1852, Clarksons offers its diverse and growing client base an unrivalled range of shipbroking services, sector research, on-hand logistical support and full investment banking capabilities in all key shipping and offshore sectors. Clarksons continues to drive innovation across its business, developing digital solutions which underpin the Company's unrivalled expertise and knowledge with leading technology.
The Group employs 1,605 people in 50 different offices across its four divisions and is number one or two in all its market segments.
The Company has delivered 16 years of consecutive dividend growth. The highly cash-generative nature of the business, supported by a strong balance sheet, has enabled Clarksons to continue to invest to position the business to capitalise on the upturn in its markets.
Clarksons is listed on the main market of the London Stock Exchange under the ticker CKN and is a member of the FTSE 250 Index.
For more information, visit www.clarksons.com.