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31-05-2021 (Live Online Training)

P21GT43SGV Live Online Training: Financial Risk Management in Shipping
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Live Online Training: Financial Risk Management in Shipping

4 Modules | 31 May – 3 June 2021 | 1:30pm-5:30pm (SGT)

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REGISTER 2 DELEGATES & THE 3RD COMES FREE!

overview

Key Learning Outcomes

  • Bunker market and bunker risk management; forward bunker contracts, hedging & trading
  • Sources of risks in shipping, and their hedging
  • Assess and compare risk management tools in Shipping (FFA vs CoA or Time Charter)
  • Principles and use of FFAs, its practicality and how they manage shipping risks
  • Practical examples on trading FFAs, modelling fleet’s exposure, and exercises on calculating flat rate and TCE
  • Analyse the options shipowners and charterers have to hedge their positions
  • Contracts and risk management
  • Bunker hedging tools
  • Know your exposure and understand freight positions and their roles in trading decisions

About the Course

Driven by trading demand & supply uncertainty, vessel orders as well as emerging fuel oil price risk, FFAs have proven to be a valuable hedging tool against the market.

Through this seminar, ship owners & managers, charterers, traders, hedge funds and FFA brokers will revise the fundamental principles of shipping risk management, FFAs, how they work, and how they are used to limit shipping risks. At the end of the course, participants will obtain an understanding of the FFA market, what influences it, and how it can be applied to freight exposures in the current economic climate.

The course combines a balance of theory, practical examples and exercises to analyse and measure the impact of FFAs in managing risks in shipping operations. Actual examples from participants will also be used to demonstrate what solutions are available.

Finally, the course will provide modern tools for assessing shipping investment projects and financial decisions more accurately, overcoming the constraints of the traditional Discount Cashflow Model, more widely known as the Net Present Value (NPV) Model.

Who Will Benefit

  • Shipowners, Ship Managers
  • Charterers
  • Commodity Financiers
  • Shipbrokers

pricing

Packages Price
Live Online Training$2876

Great Savings:
Register 2 and third attends free Call us today on +65 6973 3567 or email sgtraining@informa.com to take advantage of the discount offer.

  • A 7% Goods & Services Tax (GST) is applicable to all Singapore based companies for Singapore venue.
  • View payment terms and bank transfer details, click here »

Live Online Training

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Catering to meet all your learning needs:

  • Get high quality practical training from our expert instructors
  • From Face To Face, Online and Blended Learning, get a superior solution for your learning needs
  • Learn live online in an interactive environment
  • Invest in yourself. Invest in your team.

Register today for our Live Online Training courses and find out how they can help you transform the way you work. Contact one of our training consultants on sgtraining@informa.com to find out more.

View Live Online Training Brochure

Testimonials

“Excellent speaker, the course provided a lot of examples and knowledge”
– Shiee Sagar Stevedores

“Trainer is very knowledgeable and provided up-to-date industry insights in the ship finance market through relevant materials and examples. I can immediately apply financial risk management strategies in investment evaluations.”
– Neptune Orient Lines

“Insightful programme, especially on the portfolio risk management and financing options”
– Seaco Asia

trainer

Dr. Stavros Tsolakis

Vice President – DST Shipping Group; Honorary Consul of the Republic of Korea; Visiting Professor, Singapore Management University

Agenda

THE SHIPPING CONTRACTS AND RISKS

  • Contracts
  • Sources of risks
  • Fundamentals of freight markets
  • Supply and demand of vessels
  • Market cycles and trading environment
  • Shipping trend observations in major commodities traded
  • Freight rates updates
  • Factors affecting volatility

SHIPPING RISK MANAGEMENT

  • Sources of risks
  • Risk management and use of derivatives in shipping
  • Comparison of risks across shipping segments
  • Freight risk management tools available
  • Financial risk management in shipping
  • Interest rate risk
  • Financing examples and sources of interest rate risk
  • Instruments to manage risks
  • Hedging interest rate risk using forwards and futures
  • Currency swaps and swapations
  • Interest rate caps, floors and collars
  • Case studies

UNDERSTANDING SHIPPING NATURAL HEDGE

  • Analyse the options shipowners and charterers have to hedge their positions.
  • Shipowners’ Traditional Strategies to Minimise Financial Risk

BUNKER RISK MANAGEMENT

  • Bunker market – how will it affect hedging
  • Fundamentals of bunker risk management in shipping
  • Bunker derivatives
  • Forward bunker contracts, hedging and trading
  • Options on bunker prices
  • Exercise

TIME CHARTER EQUIVALENT (TCE)

  • How to calculate?
  • Practical exercise

THE FREIGHT MARKET

  • The need for the development of freight futures concept
  • The Baltic Exchange Charts and how they are developed/ structured.
  • Potential Users of Futures Contracts
  • A shipowners decision making process in hedging against a freight fall
  • A charterers’ decision making process in hedging against freight increase
  • OTC Swaps
  • Cleared swaps
  • Analyse the different futures and forward contracts in shipping

OVERVIEW OF CURRENT FFA MARKETS

  • The function
  • Principles and use of FFAs
  • Overview of markets (dry vs wet)
  • Using FFA to cover exposures
  • Charterers’ strategies
  • Owners’ strategies
  • Setting up a clearing account
  • Initial margins and margin calls
  • Default and netting

CORRELATIONS

  • Between FFA routes and the Physical Market
    – Trade routes and contracts available
    – Deciding which contract to use
  • Between Paper and Physical – choosing the right period and volume

PRICING AND SETTLEMENTS

  • Baltic index
  • Daily mark to market (M2M)
  • Contract settlement
  • Exchanges – mechanism and futurisation
  • Clearing houses and exchanges

EXERCISE:

  • Comparison between future, forward and physical hedging tools
  • What to trade, when and why
  • Assess the future market in identifying price risk period
  • Using a traded contract – manage your own daily book. Mark to market and final settlement

FFA MARKET IN PRACTICE

  • The forward curves – firm and indicative
  • Bids and offers – price matching
  • OTC vs Screen Trading
  • Trade flow process – OTC Cleared and Exchange traded
  • General Clearing Merchants (GCMs) – their role and function

FFA TO COVER EXPOSURES – KEY STRATEGIES FOR

  • Charterers
  • Owners
  • Traders

when & where

31 May - 03 Jun 2021

Live Online Training

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