▁in ▁ 2 0 1 2 . ▁In ▁ 2 0 1 4 , ▁in ▁order ▁to ▁better ▁achieve ▁the ▁risk ▁sh ifting ▁effect ▁of ▁sh ipping ▁fre ight ▁derivatives , ▁S SE FC ▁innov ated ▁and ▁launched ▁the ▁world ' s ▁first ▁physical - del iver able ▁sh ipping ▁capacity ▁contract . ▁ ▁The ▁sale ▁and ▁purchase ▁market ▁In ▁the ▁sale ▁and ▁purchase ▁market , ▁second - hand ▁ships ▁are ▁trad ed ▁between ▁ship own ers . ▁The ▁administrative ▁procedures ▁used ▁are ▁roughly ▁the ▁same ▁as ▁in ▁the ▁real - est ate ▁business , ▁using ▁a ▁standard ▁contract . ▁Tr ading ▁ships ▁is ▁an ▁important ▁source ▁of ▁re venue ▁for ▁ship own ers , ▁as ▁the ▁prices ▁are ▁very ▁vol atile . ▁The ▁second ▁hand ▁value ▁of ▁ships ▁depends ▁on ▁fre ight ▁rates , ▁age , ▁infl ation ▁and ▁expect ations . ▁ ▁The ▁ship building ▁market ▁The ▁new building ▁market ▁de als ▁with ▁transactions ▁between ▁ship own ers ▁and ▁ship build ers . ▁Cont ract ▁neg ot iation ▁can ▁be ▁very ▁complex ▁and ▁extend ▁beyond ▁price . ▁They ▁also ▁cover ▁ship ▁specific ations , ▁delivery ▁date , ▁stage ▁pay ments ▁and ▁fin ance . ▁The ▁prices ▁on ▁the ▁new building ▁market ▁are ▁very ▁vol atile ▁and ▁sometimes ▁follow ▁the ▁prices ▁on ▁the ▁sale ▁and ▁purchase ▁market . ▁ ▁The ▁demol ition ▁market ▁On ▁the ▁demol ition ▁market , ▁ships ▁are ▁sold ▁for ▁sc rap . ▁The ▁transactions ▁happen ▁between ▁ship own ers ▁and ▁demol ition ▁mer ch ants , ▁often ▁with