Arbs-Driven Forward Freight Agreements (FFAs) Forecasting

September 2024

Summary

This whitepaper presents an arbs-driven model for forecasting major Forward Freight Agreements (FFAs) across key shipping routes. It focuses on using arbitrage margins to predict price movements over the next seven days, providing traders with insights to inform their trading decisions.

What you will learn:

• Understanding Arbitrage Margins: How arbitrage margins influence FFAs and their role in predicting price changes.
• Data Insights: Key shipping routes and arbitrage margins used in the forecast model.
• Forecasting Models: The statistical relevance of arbitrage margins in forecasting short-term FFA movements.
• Performance Analysis: An overview of back-tested performance, showing the potential for profitable trading based on forecasted trends.

This whitepaper offers traders a straightforward approach to understanding FFA price movements and identifying potential opportunities in the freight market.