ICAP Launches Global Dry FFA Trading Desk

ICAP has announced the launch of a new global Dry Forward Freight Agreement (FFA) Desk, thereby expanding its freight derivatives capabilities and strengthening its services for a wide international client base. This strategic move reflects the company’s ongoing efforts to enhance its presence in the global freight markets while meeting growing demand for sophisticated risk management tools. 

Notably, ICAP has established the Dry FFA Desk with a truly global footprint, ensuring seamless service across major freight trading regions. The firm has positioned its brokers in key hubs including London, Copenhagen, Dubai, and Singapore. As a result, the desk provides around-the-clock coverage for clients operating across Europe, the Middle East, and Asia, including major markets such as China and Hong Kong. This global setup enables ICAP to respond quickly to market developments and client needs. 

ICAP Launches Global Dry FFA Trading Desk

Furthermore, Max Nijhawan will lead the new desk, bringing extensive experience in freight derivatives markets. Under his leadership, the team aims to deliver high-quality brokerage services while also supporting the evolving demands of both traditional and financial market participants. The desk serves a diverse range of clients, including ship owners, operators, miners, grain houses, investment banks, hedge funds, and trading firms. It actively covers major vessel segments such as Capesize, Panamax, Supramax, and Handysize time charters.

In addition, the Dry FFA Desk will closely collaborate with ICAP’s established Dry Bulk physical desk, particularly in Denmark. This integration allows the firm to offer a more comprehensive and coordinated service to clients operating in both physical and derivatives markets. Consequently, ICAP enhances its ability to provide valuable market insights and execution efficiency. Meanwhile, Nijhawan emphasized that strong connectivity with the funds community will serve as a key differentiator for the desk. 

As financial investors increasingly participate in freight markets, ICAP aims to leverage its long-standing relationships and global reach to support both new and existing participants. Overall, the launch comes at a crucial time, as dry freight markets remain highly volatile due to factors such as weather conditions, geopolitical tensions, conflicts, and shifting trade flows. Since nearly 80% of global trade moves by sea, the development of efficient and liquid freight derivatives markets remains essential for effective risk management.

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