Managing freight portfolios, from theory to practice

Abstract

Shipping industry is the major player in commodities carrying between continents. Aseconomies have become more related between each other, any time a crisis appears, shippingindustry is being affected in many ways. In this research we present the risks shippingindustry faces. How the costs for a ship-owner and a charterer can raise the potential risk theirrevenues face. We present a shipping portfolio and how it could be hedged using FFA and oilderivatives. We conclude by searching the correlation between some indexes we think theycan be significant in deciding how a ship-owner can make a decision on the hedging of hisportfolio.Thesis - Athens University of Economics and Business. Interdisciplinary Program of Graduate Studies