forward freight agreement
Definition
Option contract on freight rates traded on Baltic exchange, through which shippers and ship owners hedge against the volatility of the ocean freight market. It is a principal-to-principal contract used by two parties to bet on the price of a particular freight-route on a particular date.
forward freight agreement is in the Banking, Commerce & Finance, International Trade & Relations and Shipping, Transport, & Travel subjects.
forward freight agreement appears in the definition of the following term: Baltic Exchange
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