Panellists
Panellists are subject to monthly, quarterly and annual reviews of their submissions by route, to check the route reliability. The Baltic freight team will also review the composition of the Panellists for each route to ensure it is representative of that market cross-section; Owners, Operators and Charterers, for example.
Operational Benching: This is a further quality control process that supports the audit policy and enables Freight Assessors to review the Panellist’s suitability to report on a route.
Quality metrics are also measured. These are used to assess the “independence” of a Panellist for example - meaning, is that Panellist relying upon the value and direction of the index as a guide to their submission, rather than the market itself. “Lagging-Leading” score is another metric – is the Panellist lagging or leading the set in identifying market changes for that route? These and other metrics (such as lateness or failure to report etc) are used to evaluate the Panellist and it may require a Panellist to be placed on observation, or even suspended from reporting on that route.
Audit findings and results are shared with the Baltic Index Council (BIC).
For a more detailed look at the multiple KPIs and processes involved in Operational Benching please click here.
BEISL
The Baltic itself undergoes quarterly and annual reviews as part of our role as a Benchmark Administrator. The accounting firm, BDO, conducts a quarterly audit of the benchmark calculations. PwC conducts an annual audit to ensure our Guides comply with the requirements of both UK BMR and IOSCO, and that BEISL itself complies with the processes and procedures laid out in those Guides.