News from Cass Business School

New book published by Cass shipping experts

Wednesday, 3 June, 2009

Cass academics Amir Alizadeh and Nikos Nomikos have published a new book, Shipping Derivatives and Risk Management, which discusses and analyses all types of risk which market practitioners face in the shipping industry.  The book focuses on present state-of-the-art approaches regarding both the measurement and management of these risks.

Although the main focus is on freight-rate risk, it also tackles other types of risk which are equally important for a shipping venture such as ship price risk, bunker risk, credit risk and interest-rate risk. Other topics covered in this book include trading, pricing, and risk management of freight options, as well as real options and optionalities in shipping investment and operations.

The authors present how these factors affect the cash flows of traders in the market, provide practical examples of how the risks can be hedged and the explain the various instruments participants can use in order to manage those risks.

The topics chosen for investigation were motivated by industry, via both discussions and interaction with practitioners, as well as the authors’ academic interest in the structure of freight markets and their risk management.

Nikos Nomikos said: Our book is particularly relevant in the current economic climate where risk is a key issue for all sectors, including the shipping industry.  These are interesting times for the shipping industry with an unprecedented volatility in freight rates in the past five years.  Although risk should always be carefully managed, the issue has taken over more of the spotlight than ever before recently.

To purchase a copy of Shipping Derivatives and Risk Management please visit: or

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