Blog Post
Clarksons completes first LNG freight futures trades on CME Group
info • Jan 06, 2020
Clarksons announced today that on December 23rd, 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. 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".
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