Category: Guidance to Panellists

 

Panellist Guidance – Assessing Routes in the Absence of Direct Fixtures

 

With the ongoing situation in the Middle East Gulf and the current market conditions, Panellists are reminded that, in such circumstances, assessments should be provided using their professional judgement

Where no direct fixtures are available, Panellists should form their assessments by referring to relevant market information, which may include, but is not limited to:

 

• Ongoing negotiations and other verifiable price indications from owners or charterers

• Negotiations or fixtures on more liquid, closely related or economically comparable routes, normalised to reflect the route being assessed

• Time charter equivalent earnings and prevailing market structure

• Tonnage supply, cargo demand, and observable market sentiment

• In extraordinary circumstances Panellists can look at the FFA market for information

 

Such assessments are judgement based and should represent the Panellist’s view of best achievable market value on the specific route.

 

Panellists are asked to document the basis of their assessment to the Baltic assessor so that expert judgement can be verified.  Such judgement may include any reference markets or assumptions used to support transparency and auditability.

Assessments should remain independent and must not be influenced by external commercial pressures.

 

If in a Panellist’s opinion market conditions deteriorate to the point where a route becomes no longer assessable, they are to inform the Baltic as soon as possible.

 

The Baltic will consult with Panellists and relevant Advisory Councils on any further measures, including potential route suspension.

 

Until any formal change is announced, Panellists should continue to assess and report in accordance with this guidance and the GMB.

 

Any questions regarding this guidance should be directed to balticbroker@balticexchange.com

 

GP/All/202603/12/N