DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

11 DERIVATIVE FINANCIAL INSTRUMENTS

Forward freight agreements and bunker swaps - analysed between:

	2021			2020
	US$’000			US$’000
Assets
Current assets		5,370			458
Non-current assets		611			-
Liabilities
Current liabilities		(704	)		-

The Group has entered into a number of forward freight agreements in the normal course of business in order to hedge against open positions in the fleet from contracts of affreightment and exposure to earnings on the spot market. At 31 December 2021, there are 23 (2020: 0) outstanding forward freight agreements, maturing as follows:

2021

Current assets

Derivative instruments in designated hedge accounting relationships:

Settlement period		Strike price		Duration	Notional value		Fair value gain (loss)
		US$			US$’000		US$’000
April 2022 to December 2022	BSI-58 ave 10TC		13,300	45 days		599		406
April 2022 to December 2022	BSI-58 ave 10TC		13,300	45 days		599		406
April 2022 to December 2022	BSI-58 ave 10TC		13,300	180 days		2,394		1,624
January 2022 to December 2022	BSI-58 ave 10TC		17,350	180 days		3,123		1,016
January 2022 to December 2022	BSI-58 ave 10TC		17,250	60 days		1,035		345
January 2022 to December 2022	BSI-58 ave 10TC		17,250	60 days		1,035		345
January 2022 to December 2022	BSI-58 ave 10TC		17,250	60 days		1,035		345
January 2022 to June 2022	BSI-58 ave 10TC		23,100	90 days		2,079		157
June2022	BSI-58 ave 10TC		25,000	15 days		375		6
July 2022 to September 2022	BSI-58 ave 10TC		21,000	45 days		945		52
October 2022 to December 2022	BSI-58 ave 10TC		19,000	45 days		855		52
January 2022 to June2022	BSI-58 ave 10TC		22,650	90 days		2,039		197
January 2022 to June2022	BSI-58 ave 10TC		23,000	30 days		690		55
January 2022 to June2022	BSI-58 ave 10TC		23,100	60 days		1,386		103
						18,189		5,109

Non-current assets

Derivative instruments in designated hedge accounting relationships:

Settlement period		Strike price		Duration	Notional value		Fair value gain (loss)
		US$			US$’000		US$’000
January 2023 to December 2023	BSI-58 ave 10TC		14,350	60 days		861		117
January 2023 to December 2023	BSI-58 ave 10TC		14,350	60 days		861		117
January 2023 to December 2023	BSI-58 ave 10TC		14,350	60 days		861		117
January 2023 to December 2023	BSI-58 ave 10TC		14,750	60 days		885		93
January 2023 to December 2023	BSI-58 ave 10TC		14,800	60 days		888		90
January 2023 to December 2023	BSI-58 ave 10TC		15,000	60 days		900		77
						5,256		611

Current liabilities

Derivative instruments in designated hedge accounting relationships:

Settlement period		Strike price		Duration	Notional value		Fair value gain (loss)
		US$			US$’000		US$’000
July 2022 to December 2022	BSI-58 ave 10TC		23,100	90 days		2,079		(176	)
January 2022 to March 2022	BSI-58 ave 10TC		27,400	15 days		411		(36	)
January 2022 to March 2022	BSI-58 ave 10TC		27,400	15 days		411		(36	)
January 2022 to March 2022	BSI-58 ave 10TC		27,400	15 days		411		(36	)
April 2022 to May 2022	BSI-58 ave 10TC		25,000	30 days		750		(20	)
July 2022 to December 2022	BSI-58 ave 10TC		22,650	90 days		2,039		(135	)
July 2022 to December 2022	BSI-58 ave 10TC		23,000	30 days		690		(55	)
July 2022 to December 2022	BSI-58 ave 10TC		23,100	60 days		1,386		(117	)
						8,177		(611	)

The Group has entered into a number of bunker swaps, as follows:

2021

Current assets

Derivative instruments in designated hedge accounting relationships:

Settlement periods		Strike price		Quantity		Notional value		Fair value gain
		US$		MT		US$’000		US$’000
January 2022	0.5% FOB Rotterdam		407.00		500		204		74
January 2022 to May 2022	0.5% FOB Singapore		505.25		1,900		960		115
January 2022 to June 2022	0.5% FOB Rotterdam		518.00		1,200		622		22
January 2022 to February 2022	0.5% FOB Singapore		564.75		700		395		17
January 2022 to March 2022	0.5% FOB Rotterdam		533.00		2,700		1,439		33
							3,620		261

Current liabilities

Derivative instruments in designated hedge accounting relationships:

Settlement periods		Strike price		Quantity		Notional value		Fair value gain
		US$		MT		US$’000		US$’000
April 2022 to October 2022	0.5% FOB Rotterdam		533.00		6,500		3,465		(74	)
November 2022	0.5% FOB Rotterdam		528.50		500		264		(10	)
December 2022	0.5% FOB Rotterdam		527.50		500		264		(9	)
							3,993		(93	)

2020

Current assets

Derivative instruments in designated hedge accounting relationships:

Settlement periods		Strike price		Quantity		Notional value		Fair value gain
		US$		MT		US$’000		US$’000
January 2021 to February 2021	0.5% FOB Singapore		276.0		1,400		386		160
January 2021 to May 2021	0.5% FOB Singapore		311.3		1,500		467		118
January 2021 to May 2021	0.5% FOB Rotterdam		298.5		2,500		746		180
							1,599		458