How shipping companies can insure revenue

When shipowners consider insurance they usually have in mind tankers going aground, loss of cargo, pollution and reputation risk – think of Prestige, Exxon Valdez, Erika and Sea Empress. But the freight rates shipowners and charterers pay, or receive, have become less predictable and that has presented them with a new source of risk, writes Adam Sonin, head of shipping derivatives at ACM/GFI