The Forward Freight Agreement (FFA) contract for the TD34 route (Oman Gulf to China), launched by the International Exchange (ICE), has recorded near-record trading volumes since its inception on October 5. This futures contract for tanker loading, based on the Baltic Exchange's TD34 price assessments, has been well received by tanker loading traders from the outset and quickly became a popular route in the market.
Trading Volume and Comparison with TD3C
According to Baltic Exchange data, 3,837 transactions for the new TD34 FFA contract were conducted on ICE during the first five days of trading (from October 5 to 9). In comparison, the TD3C contract (Gulf to China) recorded only 2,989 transactions in the same timeframe. With this performance, TD34 FFA trading in its first week surpassed TD3C by more than 128%, indicating strong market confidence in TD34 as an additional reference point for VLCC rates in the Gulf.
Market Impact and Future
Steven Aishisan, Senior Market Assessor at the Baltic Exchange, stated: "TD3C has long been one of the most traded tanker loading routes in the market, so seeing the TD34 FFA trading volume exceed existing levels so quickly indicates significant demand for additional hedging tools in Gulf tanker loading routes." He added: "Strong early liquidity for this new contract shows that the TD34 route is quickly being recognized as a credible benchmark in the Gulf."
The TD34 route, assessed based on a 270,000 metric ton cargo from Mina Al Fahal (Oman Gulf) to Ningbo in China, was launched in June 2026 in direct response to market demand for transparency and an acceptable commercial reference point for assessing VLCC loading rates outside the Arabian Gulf.
In addition to the new TD34 FFA contract, ICE also launched a new VLCC loading futures product for TD15 (West Africa to China) on October 5, which is also based on the Baltic Exchange's TD15 price assessments. Both TD34 and TD15 loading contracts are now available for settlement on ICE, with daily assessments published by the Baltic Exchange.
Aishisan concluded: "With ongoing global unrest fueling VLCC rate volatility, the launch of TD34 and TD15 FFA on ICE will provide the market with tools to help them manage loading risk with confidence, supported at every stage by independent price assessments from the Baltic Exchange."
