Fr8Tools is a suite of Excel add-ins and analytics libraries specifically designed for freight derivatives and shipping risk management. The libraries are written completely in C/C++ providing for fast calculations. The add-ins provide a wide range of Excel functions and customisable workbook templates. When installed, Fr8Tools adds functions to Excel that are used like any other built-in worksheet function, allowing the users to customise the templates already included into the solution or to create new ones.

What makes Fr8Tools unique is the fact that it is tailored to the exact characteristics of freight derivatives, with metrics which can be directly related to the underlying business (e.g. delta expressed in number of ship days or number of ships). In addition, Fr8Tools can be offered (optionally) together with a dedicated data service which provides pre-calculated input parameters for direct import into the system. Hence, we minimise the requirements for manual data entry by the user and improve productivity and speed of calculations.

The first module which is currently offered as part of the Fr8Tools suite of products is the Fr8Option module. This is specifically designed to offer a wide range of calculations relating to freight options, such as fair value, implied volatility, historical volatility, Greeks, etc. Furthermore, Fr8Options includes a complete set of Excel functions and workbook solutions for forward curve building. A unique feature of Fr8Option is the pricing model which has been developed by FreightMetrics for pricing freight options more accurately by simulating off the full forward curve of freight rates.

For further information on our Fr8Tools suite of products or to request a free demo version, please contact us.