Following consultation with members and market participants on how to derive the 28K 6TC from the 38K 7TC,the Baltic Index Council has unanimously decided that:

Transition from 28K-6TC to 38K-7TC

  • That a fixed value be used to derive the 28K-6TC from the 38K-7TC.
    The value will be based on the average differential between the two indices
    1 March 2018 to 24 December 2019.
  • The derived 28K-6TC to commence 1 January 2020.

The decision of the Baltic Index Council follows a consultation process with members and market participants, including the written consultation papers issued on 18 July 2019.As part of the consultation process, the Baltic also engaged with panellists,the Baltic Advisory Councils, the Freight Forward Agreement Brokers Association and with the relevant clearing houses.

In reaching its decision, the Baltic Index Council considered and took into account the feedback and information provided on the issues raised in the consultation process, in line with the Baltic’s Guide to Market Benchmarks. A summary of the comments received in response to the consultation paper is being made available on the website, where a copy of the consultation papers has been published.
 
Please direct any questions to balticbroker@balticexchange.com