ABSTRACT
This chapter details the charter market analysis, focusing on the freight rates perspective. The state of each freight market is discussed and the long-term historical evolution of time charter rates is illustrated for all the representative types of vessels, ranging from 1980 up to 2015. The chapter shows that the state of the market is measured and expressed, while freight derivatives are introduced to present how the freight market risk may be managed. In all sectors of the open chartering market, the price for a sea transport, namely the freight, is determined on the basis of the negotiating power of the involved parties, at a specific time, under the prevailing charter market conditions and in accordance with the special requirements of the charter. The chapter attempts to chart the most important freight markets and comprehensively describe the fundamental parameters which determine the state of the freight rates.
