Freight and oil products

NOS Clearing ASA launched the clearing service for the freight market in 2001. We provide clearing of multiple dry and tanker freight derivatives contracts. These contracts are linked to standard voyages and standard types of ships. The market for FFA (Forward Freight Agreements) had been in operation for some time, but as a simple OTC market with participants mainly from the shipping industry and cargo owner segments. When Imarex and NOS introduced anonymous screen traded contracts with clearing, the market picked up volumes and there was an improved liquidity and transparency. As an effect, financial investors entered the market, which further improved liquidity and pricing

By offering cleared freight derivatives, NOS offers an effective hedging tool to the shipping industry and the cargo owners/buyers as well as trading opportunities to financial investors. Through clearing you have several positive effects on risk management and operations:

• Guaranteed delivery, extremely low credit risk
• Elimination of credit assessment of counterparties and valuation of receivables
• Effective book-keeping, single counterparty, single account, single cashflow, all reports and risk management control through systems offered by NOS
• Anonymous trading
• Effective pricing, financial investors prefer cleared markets