Panamax consultation to derive the 74k 4TC from the 82K 5TC

Following the February working group meeting the Baltic is inviting members to submit feedback to the following recommendations.

a) A fixed value will be used to derive the 74K 4TC from the 82K 5TC starting 1 July 2019

b) The fixed value will be calculated as the average daily difference between the 74K 4TC and the 82K 5TC for the period of dual reporting (Jan 2018 – May 2019)

c) The Baltic will cease headline publication of the 74K 4TC on 31 December 2019 and continue to privately publish the 74k 4TC for as long as open interest exists in the FFA market

d) The 74K P1A, P2A & P3A routes will continue to be assessed by the panellists until 31 December 2019 (No open interest currently exists beyond 2019). 

Details of how to respond are set out in the consultation paper, which is available to members from our website. The Baltic requests all comments by 30 April 2019. 

The paper sets out the information presented at the working group and the methods considered. Feedback received by the Baltic through its consultation process to date (which remains ongoing) will be submitted to the Baltic Index Council (BIC) for its consideration. The BIC is then responsible for the final decision.
 
If you have trouble accessing a copy of the Consultation paper please contact jsykes@balticexchange.com
 
Background

On 3 November 2015 the Baltic initiated a consultation which determined that the existing 74k 4TC Index would need to be updated and a new 82k 5TC was required as its successor.

The new 82k 5TC passed successfully through the various trial stages (figure 1) and went live on 2 January 2018. 12 months of dual reporting (74k 4TC and 82k 5TC) has completed.