To FMIUG Dry users, BPI panellists, FFABA Dry, Clearing Houses

Re: Panamax reporting changes

New Benchmark vessel Tess 82

  • Private Trial reporting has been ongoing since 5 May 2017 on the Tess 82 and 5 routes.
  • In response to Panellist feedback as well as some market users, the Baltic Index Council has approved an amendment to the new Route P6, so that the delivery point is Singapore (previously it was being assessed basis H.K.-S Korea including Taiwan). This is considered a more realistic reflection of how vessels are evaluated and fixed in the market. Please see attached document outlining the vessels specification and the 5 routes.
  • Private Trial reporting will continue for a further 2-3 weeks on the new vessel and routes with the new P6 delivery (please note Private Trial information is only available for the BPI Panellists).
  • Public Trial reporting will commence by the end of July 2017 (this information will be available for members and will be posted/published in the usual manner).
  • All going well the new vessel & 5 routes will go live prior to Q4 2017 and The Baltic will dual report for a minimum of 12 months to gather comparison data for analysis.
  • The aim is to transition the benchmark vessel and routes to the Tess 82 in Q4 2018 and for existing Panamax 4TC FFA contracts to settle against a value that is based on the new routes, the differential (if any) will be calculated after analysis of the dual reporting data provided.
  • The Baltic is also looking for feedback from the FMIUG regarding moving the publishing time from 13:00 to 11:00 London, in order to make the best recommendation to the Baltic Index Council.
  • Finally, the Baltic will be commencing Private Trial reporting on 2 grain routes, once the selection of suitable panelists has been completed. [These routes will not be included in the calculation of the BPI.]
  • Mississippi river to Qingdao (13m arr draft). 66,000mt HSS, 10% more or less in owner’s option, free in and out, trimmed. 10,000mt Saturdays, Sundays + holidays excluded loading, 8,000mt Saturdays, Sundays + holidays excluded discharge. 24 hrs turn time at loading port, 24 hrs turn time at discharge port. Loading 10/20 days from index date. Age max 15 years. 5% total commission.[routing is via Cape of Good Hope]
  • Santos to Qingdao (13m arr draft). 66,000mt HSS, 10% more or less in owner’s option, free in and out, trimmed. 8,000mt Saturdays, Sundays + holidays excluded loading, 8,000mt Saturdays, Sundays + holidays excluded discharge. 24 hrs turn time at loading port, 24 hrs turn time at discharge port. Loading 10/20 days from index date. Age max 15 years. 5% total commission.

Please pass on your feedback or direct any questions to balticbroker@balticexchange.com