FreightMetrics offers tailored advisory services addressing a wide range of risk management requirements of clients with market or credit exposure in the shipping industry. Our people are financial and shipping market professionals, with many years of experience in risk management, mathematical modelling, and IT development. We deliver solutions based on practical knowledge and an understanding of current market developments.

While FreightMetrics is able to work on several different mandates, the following bundles provide an outline of our most common forms of consulting mandates. These are meant as a guideline and can be tailored to a meet a client’s specific requirements.

Risk Policies and Procedures
The creation of a proper internal organization and the presence of written policies and procedures are essential to engage in FFA trading in a disciplined and safe manner. We can help you meet these requirements based on industry best practices.

Risk Measurement Outsourcing
Whether you are trading FFAs for hedging or speculation, the identification and quantification of the risks associated with your trading books are essential to prudent risk management. We are able to provide independent risk measurement services based on proven techniques and customized risk reporting.

Hedging Advisory
The reduction of risk can be achieved in many different ways. The strategy that is most efficient to your situation requires careful consideration. Our knowledge of the market and modeling skills brings you the necessary know-how to develop the best approach.

Transaction Advisory
Transacting a shipping derivative product or strategy can be daunting to those not completely familiar with the market. FreightMetrics can offer assistance from strategy specification and counterparty clearance through to trade execution and then ongoing valuation.

Loan Portfolio Review
Banks involved in ship financing typically measure the repayment risk of their loans by means of simplistic cash flow projections and deterministic stress tests. We provide a far more advanced approach based on Monte Carlo simulation, which in addition to providing more accurate and objective results, allows banks to verify internal risk ratings and RORAC models, discover their loan pricing function, and comply with Basel II.

Financial Engineering / Structured Products
For banks and fund managers interested in issuing structured products with payoffs linked to freight markets, we can provide expert assistance in the creation, marketing, valuation and hedging of such products.

Quantitative Model Development
While we are able to propose our own risk models, we can also assist you with the full mathematical and IT implementation of your own proprietary pricing / risk models.

If you would like more information on our consulting services, please contact us.