| Enterprises are profit-oriented organizations, shipping companies are no exception. Shipping company income is the source of the company's profits. International shipping market, is a very dramatic fluctuations. In 2008, in just a few months, the Baltic shipping index fell from more than 10,000 points to a few hundred points, fallen by 95%. Price volatility is so intense that every company can not be tolerated. China as the world's leading consumer and importer of raw materials, are often subject to international fluctuations of shipping prices. Especially in the tanker transport market, freight price volatility is very large, companies have a strong hedging demand. Cargo owner and shipping companies need to provide a dynamic management tool for avoiding fluctuations.To do this we will use various methods to avoid this risk and the financial derivatives in the shipping market birth. Skilled master of this tool is the premise of the shipping companies to use it. this paper will introduce freight options and its pricing and operating strategies.If our shipping companies want to obtain long-term, sustained, stable development, they must establish their own advantages on the whole industry chain in the shipping industry Shipbuilding, ship chartering, ship management, corporate governance, freight revenue; now and the future management. Companies need a comprehensive, three-dimensional management, every step is very important. Our focus here is freight revenue of the shipping companies, ensuring their income and a stable cash flow. Cash is the business of blood, the cash flow break means bankruptcy. Steady cash flow for an enterprise is so important that we must make a special attention to it.This paper is to price the freight options in shipping market based on analysis the general financial markets for Asian option pricing model. We introduce the Levy approximation of option pricing models option pricing in the financial markets into the maritime freight options market. And we will introduce the operations strategy of freight options in the oil transport market,.To illustrate the freight option pricing formula and its application in the shipping market, we gives hedge case on the point of shipping owners and cargo owners on the basis of Levy model in combination Oslo Stock Exchange launched trading of international maritime type.Finally, we analysis all the shipping market participants and the situation of China's shipping company facing. We think that our aim should be to hedge and actively participate in the shipping derivatives markets. We can learn and train our skills, and enhance the overall level of China's shopping industry development. |
