Since 3 April 2017, the Baltic has been publishing a derived 6TC value for the Tess 52 which is calculated from the Tess 58 route values; S1B, S2, S3, S4A, S4B. As part of the final transition from the 6TC to the 10TC publication for both the Index and the forward curve, notice was given on 10 November 2017 (Circular 50/17) of a change to the methodology used to derive the 6TC calculation and such change to come in to effect 3 July 2018.

The proposed change aligns the pricing methodology of the Tess 52 physical Index and the Tess 52 forward assessments.

Current Methodology 
• Derived 6TC Index = (S1B_58*21.4286% + S2_58*28.5714% + S3_58*21.4286% + S4A_58*14.2857% + S4B_58*14.2857%) * VDF
• 6TC Forward assessment = 6TC BFA

New Methodology 
• Derived 6TC Index = Tess 58,000 10TC – Y
• 6TC Forward assessment = Tess 58,000 10TC BFA – Y
Where Y is the average difference between the weighted Tess 58 10TC and the derived Tess 52 6TC index published between 3 July 2017 - 29 June 2018 (inclusive).

Note
VDF = Vessel Differential Factor
https://www.balticexchange.com/dyn/_assets/_pdfs/BSIannouncementfinal.pdf

BFA = Baltic Forward Assessment
https://www.balticexchange.com/ffa

Y = Average (10TC–6TC, 10TC–6TC, 10TC – 6TC…..)
Current average for period 3 July 2017 to 8 June 2018 = $276

Circulars related to the Supramax change

Circular 50/17:
https://www.balticexchange.com/news/market-announcements/article/supramax-reporting-changes-/3620/

Circular 14/17:
https://www.balticexchange.com/news/market-announcements/article/circular-14-17-supramax-reporting-changes-correction/3692/

Circular 6/17:
https://www.balticexchange.com/news/market-announcements/article/circular-6-17-supramax-reporting-changes/3496/

Circular 31/16:
https://www.balticexchange.com/news/market-announcements/article/supramax-reporting-changes/3468/

Circular 22/15:
https://www.balticexchange.com/news/market-announcements/article/baltic-supramax-index-changes-to-vessel-size-and-routes/3308/

Any questions or comments should be directed to balticbroker@balticexchange.com