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Products 
Fr8Metrics
Fr8Metrics™ is a framework for quantifying freight market risk in shipping portfolios, comprising of both physical and financial assets. Fr8Metrics™ is intended for use by shipping banks, shipowners, and any other shipping industry participant with exposure to freight rate fluctuations. Fr8Metrics™ provides advanced risk analytics to support a wide range of shipping-related decisions: - Ship financing decisions The Fr8Metrics™ methodology is simulation-based rather than forecast-based. It draws on advanced Monte-Carlo simulation techniques to analyse cash flow sensitivity to freight rate fluctuations in probabilistic terms. Fr8Metrics™ is generally based on, but differs significantly from, the Value-at-Risk (VaR) concept developed by J.P. Morgan in the early 90's for the measurement, management, and control of market risk in its trading, arbitrage, and investment account activities. The added value of Fr8Metrics™ lies in the original models that we developed to simulate the evolution of freight rates, taking into consideration the unique seasonal and cyclical characteristics of shipping markets. Fr8Metrics™ is able to incorporate the influence of correlations, not only across different market segments within the shipping industry, but also between shipping and financial markets. Thus, it is possible to capture potential diversification effects within a portfolio that combines both shipping and financial assets. Although we place great confidence on the Fr8Metrics™ methodology, we continue to believe that no amount of sophisticated analytics will replace experience and professional judgment in managing risks. Fr8Metrics™ is nothing more than a high-quality tool for the professional risk manager in the shipping markets and is not a guarantee of specific results. To find out more about our Fr8Metrics™ methodology and software, please visit our Downloads page to obtain our brochures and technical documents.
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