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Tuesday, January 16, 2018

Baltic Exchange News

Baltic Exchange to Develop LNG Freight Index

(File photo: Teekay Corporation)

The Baltic Exchange is looking into launching a freight index for liquefied natural gas (LNG) and is working with leading ship brokers to explore potential shipping routes that might be used as the LNG market grows, the company said on Thursday. Founded in 1744 as a forum for chartering vessels, the Baltic Exchange now produces benchmark indexes for global shipping rates, including ones used by the multi-billion dollar freight derivatives market. Singapore Exchange acquired the exchange in 2016 and since then the Baltic has been looking for new markets to develop.

Capesize Rates Pull Baltic Index to 4-month Low

© NS Photography / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, hit a more than four-month low on Tuesday, as capesize rates dropped to their lowest since August last year. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, lost 43 points, or 3.4 percent, to 1,221 points, the lowest since Sept. The capesize index fell 221 points, or 9.91 percent, to 2,010 points, its lowest level since Aug. 10 last year.

Baltic Exchange Chief Outlines Growth Plan

Newly appointed Baltic Exchange Chief Executive Mark Jackson has set out the Exchange’s vision of the near-future in a wide-ranging speech in Singapore during the concurrent MPA Singapore Maritime and Singapore Iron Ore Weeks. “The recent acquisition of the Baltic Exchange by the Singapore Exchange (SGX) has reinvigorated this key international maritime institution, allowing us to grow our leadership profile and play a bigger role than ever before in setting standards, building consensus and leading change in the shipping markets. These are bold plans and will ensure that the Baltic Exchange remains at the heart of the bulk shipping industry for the long-term.

Baltic Exchange Board Backs SGX Bid

The Baltic Exchange board has unanimously backed a takeover bid from Singapore Exchange Ltd , a deal that will give SGX access to a trading platform for the multi-billion dollar freight derivatives market. On Aug. 4, SGX offered shareholders in London's privately owned Baltic Exchange 160.41 pounds in cash per share, for a total 77.6 million pounds ($102 million), and urged them to back the deal. The exchanges have agreed on the terms of the SGX offer, they said in a joint statement on Monday. "The proposed acquisition will accelerate the growth and development of the Baltic Exchange beyond what it could achieve on its own," Baltic Exchange Chairman Guy Campbell said.

Baltic Exchange Honors Eyal Ofer with Life Membership

Eyal Ofer: Photo The Baltic Exchange

London's Baltic Exchange informs that the achievements of Eyal Ofer, the principal of ship management company Zodiac Group, have been celebrated with the award of honorary life membership of the Exchange. The prestigious award was last awarded in 2009 to the late Sammy Ofer, KBE, father of Mr Eyal Ofer. Other recipients of Baltic Exchange honorary membership have included the Duke of Edinburgh, Winston Churchill, and Maersk Mc-Kinney Moller. Presenting the award Baltic Exchange…

Singapore Exchange, Baltic Exchange Continue Transaction Talks

Singapore Exchange (SGX) has agreed with the Baltic Exchange Limited (Baltic Exchange) to extend the period of exclusive discussions regarding a cash offer for 100 percent of the share capital of the Baltic Exchange (Transaction) from June 30, 2016 to August  31, 2016.   SGX and the Baltic Exchange have together met with shareholders and much of the stakeholder community over the past weeks to discuss the Transaction and have made good progress in consultations. The extension to the period of exclusivity allows this dialogue to continue before the final terms of the Transaction are agreed.   SGX reiterates that there is no assurance that the exclusivity agreement signed on May 25, 2016 will lead to any definitive agreement or completion of the Transaction.

Baltic Exchange Names Sykes Chief Commercial Officer

The Baltic Exchange has appointed a new chief commercial officer; Janet Sykes, former head of communications at shipping services provider Clarksons Platou, will join the Baltic Exchange on July 3. Sykes worked at Clarksons Platou between 2010 and 2017 where she was responsible for all internal and external communication and marketing. She was previously head of marketing at the Baltic Exchange (2001-2010) and has previously worked as shipbroker at Howe Robinson (1991-2000). Baltic Exchange chief executive, Mark Jackson, said, “We're delighted that Janet Sykes will be joining the team. She has global shipping experience with a strong focus on the derivative markets and data products.

London's Baltic Exchange Redefines Capesize Terms

Capesize Bulk Carrier: Wiki CCL photo

The move follows a formal consultation process with the dry bulk market which began on 11 October 2013. Trial reporting on the new routes and vessel description will begin in late January/early February with a lifting of the trial anticipated by the end of March 2014. The existing routes and new routes will be published side-by-side until there is no further open interest in either Forward Freight Agreements (FFAs) or options to be settled. This vessel will routinely be referred to as the 'Baltic Capesize 2014'. 15 knots ballast/14 knots laden on 62mt fuel oil (380 cst), no diesel at sea.

SGX Prods Baltic Exchange Shareholders to Okay Bid

Total valuation of potential deal at least $113 million; Baltic shareholders key to clinching sale agreement. Singapore Exchange Ltd (SGX) plans to buy one of London's oldest institutions, the Baltic Exchange where shipping rates are published, and urged shareholders on Thursday to support a deal. As the global shipping industry struggles with the worst market conditions for decades, SGX offered shareholders in the privately-owned Baltic Exchange 160.41 pounds in cash per share, for a total 77.6 million pounds ($102 million). Founded in 1744 as a forum for chartering vessels, the Baltic Exchange now produces benchmark indexes for global shipping rates and owns a trading platform for the multi-billion dollar freight derivatives market.

Capesize Bunker Consumption: Baltic Exchange Issues Brokers Guidance

Capesize Bulk Carrier: Photo courtesy of K-Line

The Baltic Exchange advises panellists that with the prevalence of 'slow steaming' they should assume that if steaming at 12kts laden/13kts ballast, Capesize vessels will consume 44 tonnes per day (NDAS). The London market exchange has provided its shipbroker panel members with further guidance on the way in which they assess the capesize market. The move has followed extensive market consultation and reflects the need for greater precision on the slow steaming characteristics of the Baltic capesize vessel type. “This guidance does not imply any change to the index definition.

Baltic Exchange Appoint Guy Campbell Chairman

Guy Campbell: Photo credit Navigate PR

Guy Campbell of the China Navigation Company has been appointed by the Baltic Exchange Board of Directors as Chairman for a two year term of office. He replaces Quentin Soanes who served as Chairman from 2012. Guy Campbell, FIFC, MCIArb is aged 47 and began his shipping career at shipbroker JE Hyde & Co Ltd in 1990. A dry cargo specialist, he became a Baltic Exchange member in 1991, remained at JE Hyde for seven years before joining Koch Industries, where he spent 10 years as a chartering manager and eventual Director, Ocean Freight for Koch Carbon LLC.

Baltic Exchange to Shutter Baltex

The Baltic Exchange will close its freight derivatives platform Baltex at the end of the year after a strategic review, the London-run business said on Monday.   Baltex was launched by the centuries-old Baltic Exchange in June 2011 as the first central electronic marketplace for freight forward agreements, which allow investors to take positions on freight rates at a point in the future.   Singapore Exchange completed its 87 million pound ($114.19 million) acquisition of the Baltic in November last year.   Reporting by Jonathan Saul 

Baltic Exchange Appoints Jones A-P Director, Singapore

Christopher Jones: Photo courtesy of Baltic Exchange

Jones joins the Baltic Exchange from ICAP Shipping Singapore where he was director of sale & purchase. He will replace Philip Williams who retires from the role in April, and he 
will be based at the Exchange's Singapore office. Baltic Exchange Chief Executive Jeremy Penn said:

 “We’re delighted to welcome Chris Jones to the team. The Baltic Exchange’s presence has grown significantly in Asia with our Singapore office leading the drive. More of the Baltic’s freight market information than ever before is produced from Singapore.

Singapore Exchange in Talks to buy Baltic Exchange

Baltic Exchange privately owned by 380 shareholders. The Singapore Exchange (SGX) is in exclusive talks to buy London's Baltic Exchange, which has been at the heart of the global shipping industry for centuries, the two companies said on Wednesday. Founded in 1744, the Baltic Exchange is no longer a forum for chartering vessels but owns benchmark indexes for global shipping rates and provides a trading platform for the multi-billion dollar freight derivatives market. The takeover talks come as the global shipping industry grapples with the worst market conditions for decades after a slump in commodity markets coincided with an increase in the number of vessels, sending freight costs to record lows.

Singapore Exchange Looks to Buy Baltic Exchange

Singapore Exchange Ltd (SGX) said it planned to offer 77.6 million pounds ($103 million) to buy London's Baltic Exchange and was seeking support from Baltic's shareholders for the deal. In a statement on Thursday, SGX said it sought to acquire from Baltic shareholders their issued ordinary share capital for 160.41 pounds in cash per share, representing a total consideration of 77.6 million pounds. "SGX again states that there is no assurance that the exclusivity agreement signed on 25 May 2016 will lead to any definitive agreement(s) or completion of the Potential Transaction," SGX said in the statement. The announcement came after Reuters…

China Merchants Offers to Buy Baltic Exchange

Photo by Baltic Exchange

China Merchants Group has made an informal bid for London’s Baltic Exchange, says a report in Reuters. The State-run conglomerate has made an informal offer through a subsidiary, China Merchants Securities. An acquisition of the Baltic, which was founded in 1744, would give the Chinese conglomerate ownership of the industry's benchmark indices - which could be further commercialized - and greater access to the multi-billion dollar freight derivatives market. It emerged in February that the Baltic Exchange…

Historic Low for Baltic Dry Bulk Freight Index

Dry Bulk Shipping. Photo: Cambiaso & Risso

The Baltic Dry Index fell 4.7 percent to 484 points, the lowest in Baltic Exchange data starting in January 1985. Baltic Dry Index is compiled by the London-based Baltic Exchange and covers prices for transported cargo such as coal, grain and iron ore. The index is based on a daily survey of agents all over the world. Baltic Dry hit a temporary peak on May 20, 2008, when the index hit 11,793. The lowest level ever reached was on Tuesday, December 15, 2015, when the index dropped to 484 points.

Baltic Exchange Dumps Restructuring Plans

The Baltic Exchange is dropping plans to restructure the world's oldest shipping market as a mutual body. "The board has decided not to develop detailed proposals for a change in the governance of the organization," a Baltic Exchange spokesperson said. The decision reflects excessive financial expectations held by a minority of shareholders for their holdings in the existing company. A 75 percent majority by share value is required to change the Baltic's articles of association. In October the Baltic revealed plans to adopt mutual status to overcome conflicts between shareholders over the use of assets. Shareholders were split between those seeking a commercial return and those wanting to retain the exchange's status as an institution serving the wider maritime community.

Lyras to Give Presentation at Baltic Exchange

In connection with the Maritime London exhibition at the Baltic Exchange on October 3, 2002, Dimitris Lyras representing INTERTANKO will address the widely discussed issue of transparency of information with a presentation entitled 'Charterers are likely to soon depend on owners being transparent so what hurdles does this still leave for the industry to overcome ? ' Lyras's presentation will question whether there is some underlying solution to this discussion that will serve the desire of increasing safety and quality while mitigating the impact of isolated information that the industry is now required to make public.

Baltic Exchange Shareholders Approve Singapore Exchange Takeover

Baltic Exchange shareholders on Monday approved an 87 million pound ($112 million) takeover by Singapore Exchange for one of London's oldest institutions, in a deal that will give SGX access to the multi-billion-dollar freight derivatives market. The proposed transaction, unanimously recommended by the Baltic's board last month, was approved by shareholders at a general meeting in the historic City of London. It will now need regulatory approval, which shipping industry sources say is likely to be given. As the global shipping industry struggles with poor market conditions, SGX offered - after months of talks - Baltic shareholders 160.41 pounds per share plus 19.30 pounds per share as a final dividend, giving the privately owned business a total valuation of about 87 million pounds.

Baltic Exchange, LCH.Clearnet in Ship Tie-Up

London's Baltic Exchange and clearing house LCH.Clearnet are in talks about a tie-up over the Baltic's freight derivatives platform, the two groups said on Friday. Volumes have remained low on the loss-making Baltex multilateral trading facility since it started in June 2011. It is the first central electronic marketplace for freight forward agreements (FFA). "We are finalising arrangements with LCH.Clearnet, which clears about 70 percent of the dry bulk FFA market, to enable them to transform OTC (over-the-counter) derivatives into futures in response to certain rule changes," the Baltic's outgoing chairman Quentin Soanes wrote in the exchange's annual report published on Friday.

New Shipping Risk Management Course

The Baltic Exchange and the Centre for Shipping, Trade & Finance at London’s Cass Business School unveiled plans today (10 March) to deliver a series of executive courses focusing on the management of a range of financial risks in the shipping markets. The two day course “Shipping Risk Management” will cover freight, bunker, ship price, credit, foreign exchange and interest rate risk and will be held in London, Hamburg, Athens, Hong Kong and Singapore during 2005. The course will be delivered by the Centre for Shipping, Trade & Finance through Cass’s Executive Education division, CassExec. “The shipping markets are becoming increasingly risky as fluctuations in freight rates and ship prices have increased substantially.

Baltic Exchange Launches New Dry Bulk Index

The Baltic Exchange will launch a new dry bulk cargo composite index on Monday, November 1. The BDI is a composite of the existing Baltic Handy Index, Baltic Panamax Index (BPI) and the Baltic Capesize Index. It will provide a valuable general indicator for those with mixed fleets and will continue the function of the Baltic Freight Index (BFI), due to be replaced by the BPI on November 1. The BFI has been the price settlement mechanism for BIFFEX, the freight futures contract traded at the London International Financial Futures and Options Exchange.

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