Freight derivative volumes have soared this year as banks and hedge funds have turned to a market that has not been affected by the credit crunch or economic slowdown. Freight forward contracts, which allow shipowners and operators to lock in prices in advance, jumped 150% in the past year as market volatility and a sharp rise in shipping costs created opportunities for speculation and made hedging vital. In the past year, numerous investment banks including Citi, Merrill, Macquarie Bank and Goldman Sachs, and hedge funds GMI and Akuila Okeanos have set up freight derivatives desks.