(Updates with company comment in second paragraph.)
Oct. 11 (Bloomberg) -- Braemar Shipping Services Plc, the U.K.’s second-largest publicly traded shipbroker, shut its desk for trading tanker freight derivatives as the market contracts.
“It is a tough market and, while efforts were made to make it work, the decision has now been taken for economic reasons to close the desk down,” the London-based company said today in a statement e-mailed in response to questions.
Trades in tanker derivatives totaled 354 million metric tons of oil in 2010, according to figures from the Baltic Exchange, a London-based provider of freight rates. The market peaked at 427 million tons in 2008, data show. Trading in this year’s first nine months totaled just over 247 million tons, according to the exchange.
Braemar established a tanker freight desk in late 2008 in a joint venture with interdealer broker Tullet Prebon. The venture ended more than a year ago, and trading was moved in-house until it was closed at the end of September, external spokeswoman Debra Munford said by phone today.
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