Who's using Biffex? Results from a survey of shipowners

The continued survival of the Baltic International Freight Futures Exchange (Biffex) would certainly have come as a surprise to many critics that were present at its inauguration. In an effort to explain, at least partially, the reasons for its continued existence, this paper presents the results from a behavioural and attitudinal survey of shipowners. Through the analysis of the responses received, the paper attempts to evaluate the degree of success achieved by Biffex in providing shipowners with a powerful, flexible and viable mechanism for hedging their market risk. The results imply that there is great scope for improving the acceptability of the market amongst shipowners, particularly as a hedging tool. In the light of these results, the paper comments on potential future innovations within Biffex and suggests changes in marketing policy that might lead to an increased level of acceptance amongst shipowners. In conclusion, recommendations are made with respect to aspects of Biffex that are worthy of further investigation and analysis.