BALTIC EXCHANGE CELEBRATES 20 YEARS OF FREIGHT INDICES
The Baltic Exchange celebrated the 20th anniversary of the production of its freight market indices with a reception at 30 St Mary Axe, London last night (Weds 1 June).
Attended by the Lord Mayor of London, Baltic Exchange panellists and freight derivative traders, the reception marked the launch of the Baltic Freight Index (now Baltic Exchange Dry Index) in 1985 and the birth of today’s USD 30bn freight derivatives market.
Addressing the guests, Baltic Exchange Chairman Peter Kerr-Dineen said:
“20 years ago, through the far sighted vision and dogged determination of a number of our members, a dream became a reality. For years, the commodity trades whose businesses were always dependent upon the ships which carried their cargo, had sought ways of managing their freight exposure which mirrored the mechanisms of the commodity markets and which would complement the various instruments which had always existed n the physical shipping markets”
He added:
“Looking back, it is easy to overlook the genius of the solution, to introduce cash settled futures contracts settled against an assessment of the current spot market.”
He highlighted how the Baltic Exchange’s freight market information services had developed to become “central, indispensable ingredients in the complex structure of the world’s great maritime market places” underpinning a thriving freight derivatives market now turning over contracts with a face value of USD 30 bn.
The Lord Mayor, Alderman Michael Savory said:
“In many ways you could say that the launch of this new style, this unique style of shipping market index was seminal, not only for the Exchange and everyone involved in futures trading in freight, but it was the first major new City activity which predated Big Bang scarcely 10 months later.”
Today the Baltic Exchange reports on 43 key shipping routes covering the dry and wet markets as well as producing independent forward, ship value and demolition data.
ENDS
For further enquiries please contact Bill Lines at Navigate PR.
Tel: +44 (0)20 7369 1653
E-mail: blines@navigatepr.com
If you would like to receive regular press releases from the Baltic by e-mail please contact Bill Lines at the above address.
Notes to editors
The Baltic Exchange is the world's only self-regulated shipping market maintaining professional standards, resolving disputes and providing market information. With over 500 member companies from all over the world it is the largest shipbroking market and its international members handle a very large proportion of all dry cargo and tanker fixtures.
Each day the Exchange handles over 600 separate pieces of information to compile its unique freight market information, including some 43 route rates from 25 panellists in 10 countries.
More than half the world's new and second hand tonnage is bought and sold by Baltic members in a market which, according to Clarkson's Research, was worth around US$34 billion in 2002. Commissions from chartering and sale and purchase in 2002 (latest available figures) amounted to more than US$½ billion.
The Baltic Exchange ensures the relevance and robustness of its freight market information by regularly consulting with the users of its data.
Control of responsibility for Baltic freight market information lies with the Freight Indices and Futures Committee (FIFC), which is made up of five Baltic Exchange directors and in turn reports to the Baltic Board.
The FIFC receives industry input from the Freight Market and Futures Consultative Group which covers the:
Panellists
Forward Freight Agreement brokers
Principals
Traders
