Ben Courtney, head of tanker derivatives at ICAP Energy, has been elected as chairman of the Tanker FFA Brokers Association. He replaces Jay Lovell of Braemar ACM who has led the group, which represents the worldwide community of Tanker FFA brokers, for two years.
Since the drop in oil price, freight risk has become an increasingly important element in the commodity cycle. Those hedging continue to seek an offset for their exposure to unpredictable spot rates while speculators look to FFAs to exploit opportunities created by a more volatile tanker market.
Ben Courtney said:
“I am delighted to be elected as chairman of the Tanker FFABA at this exciting time for our market. 2017 marks the 20th year since the foundation of tanker derivatives. During my tenure, the FFABA will help principals realise the benefits of offsetting their exposure to turbulent spot prices by locking-in their vessel earnings or freight costs through FFAs. Our aim will be to spread understanding amongst those physical players who may see themselves as too ‘conservative’ for derivatives but who are in fact exposing themselves to far greater risk, by not using this long established, widely-trusted tool.”