,Freight Derivatives and Risk
Management in Shipping
This advanced practical textbook deals with the issue of risk analysis, measurement and
management in the shipping industry. It identifes and analyses the sources of risk in the
shipping business and explores in detail the “traditional” and “modern” strategies for risk
management at both the investment and operational levels of the business.
The special features and characteristics of all available freight derivative products
are compared and contrasted between them. Practical applications of derivatives are
showcased through realistic practical examples, while a number of concepts across the
contents of this book appear for the frst time in the literature. The book also serves as
“the reference point” for researchers in the area, helping them to enhance their knowledge
of risk management and derivatives in the shipping industry, but also to students at both
undergraduate and postgraduate levels. Finally, it provides a comprehensive manual for
practitioners wishing to engage in the fnancial risk management of maritime business.
This second edition has been fully updated in order to incorporate the numerous
developments in the industry since its frst edition in 2006. New chapters have been
introduced on topics such as Market Risk Measurement, Credit Risk and Credit
Derivatives, and Statistical Methods to Quantify Risk. Furthermore, the second edition
builds upon the successful frst edition which has been extensively taught in a number of
universities around the world and used by professionals in the industry.
Shipowners, professionals in the shipping industry, risk management ofcers, credit
ofcers, traders, investors, students and researchers will fnd the book indispensable in
order to understand how risk management and hedging tools can make the diference for
companies to remain competitive and stay ahead of the rest.
Manolis G. Kavussanos is Professor of Finance at Athens University of Economics
and Business (AUEB), Greece. He is the Founder and Director of the MSc program in
International Shipping, Finance and Management and of the Laboratory with the same
name at AUEB.
Dimitris A. Tsouknidis is elected (since January 2021) Associate Professor of Finance
with emphasis in Shipping at Athens University of Economics and Business (AUEB),
Greece. Until ofcially appointed at AUEB, he serves as Assistant Professor of Shipping
Finance at University of Piraeus, Greece.
Ilias D. Visvikis (2020†) was Professor of Finance and Founding Director of the
Executive Education Department of the American University of Sharjah (AUS), United
Arab Emirates.
,Routledge Maritime Masters
Port Economics
Wayne K. Talley
Port Economics
Second edition
Wayne K. Talley
Management of Shipping Companies
Ioannis Theotokas
Managing Human Resources in the Shipping Industry
Edited by Jiangang Fei
Shipping Business Unwrapped
Illusion, Bias and Fallacy in the Shipping Business
Okan Duru
Maritime Business and Economics
Asian Perspectives
Edited by Okan Duru
Economics of Maritime Business
Shuo Ma
Business and Economics of Port Management
An Insider’s Perspective
Wei Yim Yap
Freight Derivatives and Risk Management in Shipping
Manolis G. Kavussanos, Dimitris A. Tsouknidis and Ilias D. Visvikis
For more information about this series, please visit: www.routledge.com/Routledge-
Maritime-Masters/book-series/RMM
, Freight Derivatives and Risk
Management in Shipping
Second edition
Manolis G. Kavussanos,
Dimitris A. Tsouknidis
and Ilias D. Visvikis
Management in Shipping
This advanced practical textbook deals with the issue of risk analysis, measurement and
management in the shipping industry. It identifes and analyses the sources of risk in the
shipping business and explores in detail the “traditional” and “modern” strategies for risk
management at both the investment and operational levels of the business.
The special features and characteristics of all available freight derivative products
are compared and contrasted between them. Practical applications of derivatives are
showcased through realistic practical examples, while a number of concepts across the
contents of this book appear for the frst time in the literature. The book also serves as
“the reference point” for researchers in the area, helping them to enhance their knowledge
of risk management and derivatives in the shipping industry, but also to students at both
undergraduate and postgraduate levels. Finally, it provides a comprehensive manual for
practitioners wishing to engage in the fnancial risk management of maritime business.
This second edition has been fully updated in order to incorporate the numerous
developments in the industry since its frst edition in 2006. New chapters have been
introduced on topics such as Market Risk Measurement, Credit Risk and Credit
Derivatives, and Statistical Methods to Quantify Risk. Furthermore, the second edition
builds upon the successful frst edition which has been extensively taught in a number of
universities around the world and used by professionals in the industry.
Shipowners, professionals in the shipping industry, risk management ofcers, credit
ofcers, traders, investors, students and researchers will fnd the book indispensable in
order to understand how risk management and hedging tools can make the diference for
companies to remain competitive and stay ahead of the rest.
Manolis G. Kavussanos is Professor of Finance at Athens University of Economics
and Business (AUEB), Greece. He is the Founder and Director of the MSc program in
International Shipping, Finance and Management and of the Laboratory with the same
name at AUEB.
Dimitris A. Tsouknidis is elected (since January 2021) Associate Professor of Finance
with emphasis in Shipping at Athens University of Economics and Business (AUEB),
Greece. Until ofcially appointed at AUEB, he serves as Assistant Professor of Shipping
Finance at University of Piraeus, Greece.
Ilias D. Visvikis (2020†) was Professor of Finance and Founding Director of the
Executive Education Department of the American University of Sharjah (AUS), United
Arab Emirates.
,Routledge Maritime Masters
Port Economics
Wayne K. Talley
Port Economics
Second edition
Wayne K. Talley
Management of Shipping Companies
Ioannis Theotokas
Managing Human Resources in the Shipping Industry
Edited by Jiangang Fei
Shipping Business Unwrapped
Illusion, Bias and Fallacy in the Shipping Business
Okan Duru
Maritime Business and Economics
Asian Perspectives
Edited by Okan Duru
Economics of Maritime Business
Shuo Ma
Business and Economics of Port Management
An Insider’s Perspective
Wei Yim Yap
Freight Derivatives and Risk Management in Shipping
Manolis G. Kavussanos, Dimitris A. Tsouknidis and Ilias D. Visvikis
For more information about this series, please visit: www.routledge.com/Routledge-
Maritime-Masters/book-series/RMM
, Freight Derivatives and Risk
Management in Shipping
Second edition
Manolis G. Kavussanos,
Dimitris A. Tsouknidis
and Ilias D. Visvikis
