Pat Donnelly, of Braemar ACM-GFI, has been elected as Chairman of the Tanker FFA Brokers Association. He replaces Ben Courtney of ICAP Energy who has chaired the group, which represents the worldwide community of tanker Forward Freight Agreement (FFA) brokers, since 2016.
Founded in 1997, the FFABA is the worldwide association for Forward Freight Agreement broking firms. Working with the Baltic Exchange, the FFABA organises educational workshops and industry forums in major shipping centres, with the aim of promoting FFAs as an important tool for managing exposure to freight rates.
Pat Donnelly said: "It is a pleasure to have been elected Chairman of the Tanker FFA Brokers Association as we head into an exciting yet challenging 2018. FFAs are increasingly recognized as an essential tool for managing exposure to freight rates. When we talk about 'risk' in a derivatives context, we are referring to physical market risk in volatile markets, faced by even the most conservative companies. FFAs provide a flexible mechanism for managing this exposure, bringing balance sheet stability when used effectively and complimenting physical market activities. This is one of the key messages that we will be promoting over the coming 12 months. Outside of market development, the FFABA's role as an association is to provide consensus on market issues and work with the Baltic Exchange on benchmark development and implementation. MIFID II is also on the horizon and we will be working with all of our clients to help them navigate these changes as they take effect.I look forward to building on the positive work of the FFABA and to encouraging further development of this important market over the coming months."
Pat joined Braemar ACM-GFI in 2012, where he focuses on tanker FFAs. He has also previously been active as a broker for LPG, fuel oil and dry FFAs.