BALTIC EXCHANGE PUBLISHES UPDATED CODE OF PRACTICE
Publication of the latest edition of its professional Code is announced today (17 January) by the Baltic Exchange, the world's leading shipping market. The Code provides guidance for its shipbroking members in the conduct of their business in the self-regulated, international Baltic market.
Much of the world's maritime bulk cargo chartering and the sale and purchase of vessels is negotiated at some stage by members of the Exchange whose activities make a significant contribution to the UK's balance payments. In 2000, Exchange members generated more than US$ ½ billion of overseas earnings from commissions.
Peter Kitching, Chairman of the Exchange said today:
"The Code is the ethical foundation of our market place and we attach great importance to ensuring that Baltic members observe all aspects of the Code in the conduct of their business and by doing so safeguard the reputation which the Exchange enjoys internationally. The Code sets out in unambiguous terms those practices which are considered unacceptable."
This latest edition of the Code is the fifth since it was first published in its present form in 1983. The last revision was produced two years ago. Areas of the Code which have been updated include brokers' commissions on direct continuations; commissions deducted at source; the fixing by charterers of two vessels for one cargo and then holding both vessels over a period of time on 'subjects'; and the distribution of route or index rates, produced by the Exchange from its panel reporting companies, for the purpose of pricing charters or contracts without an appropriate commission to the broker. The Exchange has long-established procedures for investigating disputes between members and between members and non-members which arise from breaches of the principles and best practise enshrined in the Code. In the last twelve months the Exchange has helped resolve US$1.8 million worth of disputes on behalf of members.
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Note to Editors
The new edition of the Code is being distributed to all members of the Exchange and can also be viewed by clicking here.
Printed copies of the Code are available upon request to the Exchange.
Each year the Exchange assists in the recovery of between US$2m - US$3m on behalf of its members through its dispute resolution procedures, mainly recovering from non-members.
The Exchange is the world's only self-regulated shipping market maintaining professional standards, resolving disputes and providing market information. It is the world's largest shipbroking market and its members handle some 30 per cent of all dry cargo fixtures and 50 per cent of crude oil fixtures. 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$34 billion in 2000. Commissions from chartering and sale and purchase last year amounted to approximately US$½ billion.
