Container freight rates are known for their volatility, creating both risk and opportunity for businesses involved in global trade. With the launch of container freight futures on Euronext, companies now have a regulated and transparent way to manage this risk. This webinar explains how to access the container freight futures market, the role of brokers, and how trading works in practice, supporting the video demonstration on this page.
This webinar gives you a walkthrough of how to access and trade Euronext Container Freight Futures. It focuses on the mechanics of getting set up and executing trades, covering:
- The contracts: the four routes, contract specifications, pricing and expiries.
- Trading via a commodity broker: how they provide access, and what the onboarding process looks like in practice.
- Euronext Trader: A step-by-step demo to understand Euronext's trading front-end GUI, and how you can benefit from it.
- Placing a trade: how orders are placed on the Euronext central order book and how positions are managed and closed, with real examples.
- Position management & risk: how it works operationally, and what treasury and risk teams need to plan for.
Hosted by Euronext and Vincenz Bracke from BANDS Financial Limited for direct, hands-on brokerage experience and practical insights.
What are container freight futures?
Container freight futures are financial contracts that allow companies to lock in shipping rates for a specific route and month. These contracts are cash-settled, meaning you do not physically receive a shipping slot but instead hedge against price changes in the market. Each Euronext container freight futures contract represents five forty-foot containers (FEU) and is traded in US dollars.
Key features:
- Standardised contracts for major shipping routes
- Eighteen monthly maturities available for forward planning
- Cash-settled, so no physical delivery is required
- All trades are centrally cleared through Euronext Clearing, ensuring security and transparency
Why use container freight futures?
Freight rates can fluctuate dramatically due to global events, supply chain disruptions, or seasonal demand. By using futures contracts, shippers, forwarders, and carriers can:
- Lock in freight rates for future shipments
- Protect their budgets from unexpected cost increases
- Gain visibility into market expectations through the forward curve
The forward curve, visible on trading platforms, shows market expectations for freight rates across different months. This tool helps purchasing managers and CFOs plan ahead and manage risk more effectively.
How does trading work?
Trading container freight futures on Euronext is straightforward. You can access the market in two main ways:
- Through a broker:
A broker acts as your link to the market, helping you set up your account, understand the contracts, and execute trades. Brokers also provide guidance on compliance, onboarding, and market information. They are especially helpful for first-time participants or those new to futures trading. - Through trading software:
Companies can also trade directly using specialised platforms such as Euronext Trader, TT, or CQG. These platforms allow you to:- View live market data and the forward curve
- Place buy or sell orders for specific contracts and months
- Monitor your positions and trades in real time
Steps to start trading container freight futures
- Open an account:
Contact a broker or Euronext to begin the onboarding process. This includes compliance checks (KYC), documentation, and funding your trading account. - Choose your trading method:
Decide whether you will trade through a broker or directly via a trading platform. Your broker can provide access to the necessary software if required. - Place your first trade:
You can start small, trading as little as one contract (covering five containers). Orders can be placed by phone, email, or directly on the platform. You will need to specify whether you are buying or selling, the contract month, and your desired price. - Monitor and manage your position:
After your order is matched and confirmed, you can track your position and profit or loss daily. You can close your position before expiry or hold it until the contract settles.
Who should use container freight futures?
Container freight futures are designed for:
- Shippers looking to protect against rising freight costs
- Forwarders managing logistics contracts
- Carriers seeking to stabilise revenue
- Financial participants interested in freight market exposure
Even if you are not a large shipper, these contracts can help you manage risk, especially if your freight costs are a significant part of your business.
Practical tips for new traders
- Start with a small position to learn the mechanics of trading and settlement
- Use the forward curve to inform your shipping and budgeting decisions
- Work closely with your broker or platform provider for support and market insights
Euronext’s container freight futures market offers a secure, regulated, and transparent way to manage freight rate risk. Whether you trade through a broker or directly on a platform, you can lock in rates, manage your exposure, and gain valuable market intelligence. For more information or to get started, contact Euronext or your preferred broker, and take advantage of the resources and support available.