It is 17 December 2020 and you are in charge of operating Venture Sprit, a VLCC tanker. Your vessel has completed loadin

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It Is 17 December 2020 And You Are In Charge Of Operating Venture Sprit A Vlcc Tanker Your Vessel Has Completed Loadin 1 (162.09 KiB) Viewed 73 times

It is 17 December 2020 and you are in charge of operating Venture Sprit, a VLCC tanker. Your vessel has completed loading in West Africa and is instructed to sail to China. According to your estimation the vessel's next voyage could be in second half of February 2021 when she will be open in the Persian Gulf for potential trip to Far East. However, you are worried about freight market condition over the coming month and would like to hedge the vessel's revenue for her next voyage. Given the FFA report provided by the broker, explain how you would hedge freight exposure using your own assumptions regarding figures, scenarios and outcomes. TD3C TD7 TD8 TD19 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 7.29 7.54 7.44 7.67 8.04 8.15 5.16 6.48 6.36 6.20 5.60 5.38 9.01 13.07 12.60 12.27 11.67 11.31 6.67 8.92 8.64 8.35 8.15 7.97 6.78 7.37 7.50 7.62 7.75 7.77 17.53 18.30 17.75 18.08 18.14 18.35 11.74 14.00 14.14 14.53 14.78 14.98 TD20 TD22 TD25 Figures are $/mt