About us

Creator of the forward freight agreement

In 1985 Clarksons, the world's leading shipping services provider, formed a joint venture with Rudolf Wolff, a specialist in commodities and futures, and began trading freight derivatives under the name of Clarkson Wolff.

The concept of Forward Freight Agreements (FFAs) was pioneered by the company in 1991, and in 1995 Clarkson Securities Limited (CSL) was formed as a wholly owned subsidiary of Clarksons to focus specifically on the FFA market.

Since then, FFAs have become widely used and it is not surprising, given the experience, support and understanding of the product, that Clarksons remain the world's foremost arranger of FFA trades.

The high volatility of dry and wet freight markets has led to increased recognition of the value of these derivative products. It is no longer only the shipowners or cargo charterers who use the FFAs to manage their freight risk. Major banks and hedge funds are now also playing a key role in providing liquidity.

Where we lead, others follow

CSL offers a comprehensive broking service to companies who want to manage their freight exposure, whether to take on more risk or to minimise their existing risk. Our highly skilled team combines speed and youth with expertise and knowledge - in both shipbroking and futures broking - offering solid trading guidance and best execution.

The company continues to stand at the forefront of innovation and is continually exploring and developing new derivative products, as well as further expanding its coverage in products geared to managing freight risk.

FFAs remain the dominant product, available for Dry (Capesize, Panamax, Supramax, Handysize) and Wet (clean and dirty) sectors, but in recent years the options market has also grown substantially. Time and size spreads between the various markets have become increasingly popular, which in turn is adding to better liquidity. CSL aim constantly to anticipate market requirements and set the standards within freight derivatives.