This book deals with the issues of risk management in the shipping industry. This book is split nine sections that deal with various aspects of risk management in the Shipping Industry. It provides the theory underlying the use of derivatives and deals with the practice of the use of derivatives for risk management and investment purposes. It then analyses the sources of risk in the shipping business and proposes ''traditional'' strategies for risk management at both the investment and operational level of the business. Traditional methods of risk management are compared and contrasted with those involving financial derivatives and the different solutions offered by the various types of derivative products are compared and practical applications examined.