30 JUNE 2004
BALTIC EXCHANGE TO INTRODUCE NEW DRY FREIGHT INDEX
The Baltic Exchange has announced today that it plans to introduce a Baltic Supramax Index (BSI) which is intended to replace the existing Baltic Handymax Index (BHMI) on 3 January 2006. To ensure the continuity of the data, the Baltic will report on both the BHMI and BSI from 3 September 2005 until 23 December 2005.
The Baltic Supramax Index will be based on the following description:
Standard "Tess 52" type vessel with grabs as follows:
52,454 mt dwt self trimming single deck bulkcarrier on 12.02 m ssw
189.99 m LOA 32.26 m Beam 5ho/ha 67,756 cum.grain 65,600 cum.bale
14L /14.5B on 30mt (380 cst) no mdo at sea
Cr 4 x 30 mt with 12 cum grabs
Maximum age - 10 years
Delivery Antwerp/Skaw range for a trip of 60/65 days redelivery Singapore/Japan range including China 5 percent commission total. Laycan 5/10 days in advance. Weighting 12.5%.
Delivery passing Canakkale for a trip of 50/55 days redelivery Singapore/Japan range including China 5 percent commission total. Laycan 5/10 days in advance. Weighting 12.5%.
Delivery South Korea/Japan range for 1 Australian or trans Pacific round voyage, for a 35/40 day trip, redelivery South Korea/Japan range 5 percent commission total. Laycan 5/10 days in advance.
Delivery South Korea/Japan range for a trip of 60/65 days redelivery Gibraltar/Skaw range 5 percent commission total. Laycan 5/10 days in advance. Weighting 25%.
Delivery Gibraltar/Skaw range for one trans-Atlantic round voyage of 45/50 days, redelivery Gibraltar/Skaw range, 5% commission. Laycan 5/10 days in advance.
The Baltic will also be conducting a trial of the following two routes:
Trial Route 1
Delivery Dakar/Douala range for a trip via East Coast South America of 60/65 days, redelivery Singapore/Japan range, 5% commission. Laycan 5/10 days in advance.
Trial Route 2
Delivery South Korea/Japan range for a trip via Australia or 50/55 days, redelivery India, 5% commission. Laycan 5/10 days in advance.
If the trial routes are formally adopted it is not intended that they will contribute to the index and therefore will carry zero weighting.
To ensure the continuity of the data, the Baltic will report on both the BHMI and BSI from 3 September 2005 until 23 December 2005. It is intended that the BSI will be formally adopted and contribute to the Baltic Dry Index from 3 January 2006. It will be published both as a US dollar figure and an index figure to enable direct comparison with other Baltic dry market indices.
Commenting on the new index Baltic Exchange Chief Executive Jeremy Penn said:
"The current BHMI is based on assessments of a 45,000 mt ship, but the vessels in this sector have been increasing in size. Following an extensive consultation with principals, panellists and FFA traders headed by Baltic director Basil Mavroleon of Bray Shipping, I'm delighted that we will be publishing this new index. It's vital that the Baltic responds to the users of its data and continues to publish information which is appropriate for today's market circumstances."
For further enquiries please contact Bill Lines at Navigate PR.
Tel: +44 20 7369 1653
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 independent source of maritime market information for the trading and settlement of physical and derivative contracts. Its international community of over 500 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic.
Baltic Exchange members are responsible for a large proportion of all dry cargo and tanker fixtures as well as the sale and purchase of merchant vessels. Commissions from chartering and sale and purchase in 2002 (latest available figures) amounted to more than US$½ billion.
The Baltic Handy Index was launched on 7 January 1997 as a twice weekly service reporting on 43,000 dwt vessels. It became a daily publication on 26 April 1999 and on 2 October 2000 was replaced by the Baltic Handymax Index taking in 45,496 dwt vessels.
Baltic Exchange services
- Independent, high quality dry, wet and gas freight market information
- Self-regulated chartering, sale and purchase and freight derivatives markets
- Central forum for competing freight market interests
- Framework ensuring high standards of business practice and co-operation
- London-based business facilities for members
- A collective voice for members worldwide
Freight market information
The Baltic Exchange provides the shipping market with the following information:
- Six daily indices covering capesize, panamax, handymax dry bulk carriers and tankers carrying clean and dirty products
- 40 separate route assessments
- Mark-to-market information
- Four dry cargo reports
- Second-hand ship values
- Daily dry cargo fixture list
The Baltic exercises a light-handed supervision of the shipping market through a self-regulatory process and expects its members to conduct their business within a set of defined guidelines and work practices encapsulated in its 260 year old motto "Our Word Our Bond."
Between April 2003 and end of March 2004, the Baltic's dispute resolution service collected nearly US$ ½ million on behalf of members for unpaid commissions, demurrage claims and arbitration awards.