Shipping portfolio: hedging expected risk in dry-bulk shipping with FFAs

Abstract

The market of shipping services is renowned as one of the most violative and its comprised of many cyclical fluctuations. The dry-bulk market is no exception to this empirical conclusion. The magnitude and the frequency of these cycles could be attributed to the vessel size and the market conditionsthat vessels operate, according to Kavussanos and Alizadeh (2002) 1.