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www.maritimeprofessional.com Maritime Professional 45 SOFTWARE SOLUTIONS The “ABC’s” of FFA’s Look it up: FFA is an acronym for Future Farmers of America. As it relates to your bottom line on the water, how- ever, it means so much more. And, because no one can today know tomor- row’s headlines, Forward Freight Agreements (FFA’s) are fast becoming the vehicle of choice for some charter- ers to hedge risk and for still others to move from a traditionally defensive position into speculation on today’s wildly fluctuating freight markets. That said, the ABCs of FFAs are still a bit hazy for those still watching from the cheap seats. According to John Veson, President of Veson Nautical, It doesn’t have to be that way. SOLID PLATFORM: TRUSTED PARTNER Veson Nautical provides commercial maritime-oriented management and trading software solutions. The compa- ny, based on best practices developed over its 30-year history, is arguably one of the shipping industry’s more mature technology providers. Veson’s core offerings include IMOS (Integrated Maritime Operations System), which consists of nine core modules: Chartering, Operations, Financials, Planning, Trading, Demurrage, Pooling, Data Center, and Data Services, which can be integrated to build complete solutions for commercial maritime organizations including dry bulk, tanker, LNG, chemical, container, and barge companies. Increasingly, and because the current environment of increased risk hedging, data complexity and market volatility, shipping companies are turning to Veson’s centralized commercial man- agement platform. The Veson Trading module allows users to manage physical freight com- mitments, Forward Freight Agreements (FFAs), and options in one integrated system. FFAs can provide flexibility in terms of contract routes and pricing structure. But, what does all of that mean? MANAGING FREIGHT POSITIONS IN A UNIFIED SYSTEM Managing and tracking paper trades is still a relatively new skill. With compa- nies in the maritime industry still devel- oping the know-how to monitor, and account for their trades and positions, the need for a blueprint for essential FFA technology that allows for increased management control and profitability is at the heart of the Veson Trading module. That cannot be done in a vacuum. More than four years ago, Veson set out to develop that solution, conducting an FFA Summit in Boston, MA. FFA trading involves using the proper technology to maximize performance of Hedging risk, managing physical freight commitments: With Veson’s IMOS Trading Module it’s not as hard as it sounds. — by Joseph Keefe
