- Welcome to the new-look Baltic Briefing
Welcome to the new-look Baltic Briefing, your window into the Baltic Exchange. The site is designed to keep Baltic members informed about what’s happening at the Exchange. Do send us your news and views and remember to drop by regularly to read updates on upcoming events and social occasions.
This is not the main Baltic Exchange website, see www.balticexchange.com for daily market data.
- BDI changes – 1 March
Tomorrow (1 March 2018), the Baltic Exchange will be implementing previously announced changes to the Baltic Dry Index (BDI).
The BDI will be re-weighted to the following ratios of timecharter assessments: 40% Capesize, 30% Panamax and 30% Supramax. It will no longer include the Handysize timecharter average.
A multiplier of 0.1 will be applied to the calculation.
- Impact of 2020 sulphur cap examined
The Baltic Exchange recently (13 Feb) hosted a seminar to brief members on the upcoming 2020 sulphur cap regulations, their implementation the potential impact on the industry and price risk management.
The IMO’s head of air pollution and energy efficiency, Edmund Hughes, opened the seminar with an overview of legislation implementation as well as sharing the IMO view on industry response as the deadline approaches.
Justin Murphy, chief executive of The International Bunker Industry Association (IBIA), discussed the enforcement of the regulations, which could bring about some serious challenges. He commented that: “Outside territorial waters and ECA, the compliance agency is the vessel’s flag state and there are serious questions as to how diligent certain flag states will be.”
The presentations were then followed by a panel discussion, where the topic of conversation was ‘Alternative Bunker Supply and Market Dynamics.’ The panel was chaired by IBIA’s Justin Murphy and Adrian Pask, of BP Marine gave a refiners’ perspective on the 2020 regulations. John Bradshaw, technical director of the International Chamber of Shipping (ICS) discussed the decisions that owners face in enforcing the regulations and Paul Hardy, business development, Nautical Supply International covered bunker demand.
The event concluded with presentations on price risk management from Luke Longhurst, head of bunker desk, Freight Investor Services (FIS) and Elena Khatsavam director, oil and refined products, EMEA Intercontinental Exchange, who focused on the financial tools available and being traded by principals to hedge against price risk.
To view the presentations click here.
Photos of the event are also available on the Baltic flickr page.
- FFABA Tanker Freight Derivatives Forum
The FFA Brokers’ Association (FFABA) held a tanker freight derivatives forum during International Petroleum (IP) Week at the Connaught Hotel, London.
The forum focused on industry benchmarks and developments, with presentations senior market analysts. Alongside the macro economic outlook for oil markets from Saad Rahim, chief economist at Trafigura Pte Ltd, Dag Kilen senior analyst, oil tankers, Fearnleys, discussed tanker demand. The event concluded with a lively panel discussion chaired by Will Leslie of Trafigura.
For photos of the event, please see the Baltic Flickr page.
- Member update
The following individuals have applied for membership of an existing member company.
INDIVIDUAL COMPANY Mr B M J Tridon Affinity (Shipping) LLP Mr P Smylov Riverlake Shipping Limited Mr V Pantazopoulos Associates Mr T J Garnsworthy Pacific Basin Shipping (UK) Ltd Mr S C Mak Clarksons Platou Mr S J P Jones Clarksons Platou Miss C R Loumpardia Ace Chartering SA Mr J Yao Powerchina Resources (Singapore) Holding Pte Ltd
Any comments should be passed to Karen Karanicholas by 7 March 2018.
- Peter Broke-Smith
A celebration of Peter Philip Broke-Smith’s life will be held in the afternoon of Thursday 22 March in Notting Hill, London. Peter Broke-Smith sadly passed away on 3 January having bravely battled cancer for over six years. He first became a member of the Baltic Exchange in 1969 while at Eggar Forrester. Thereafter he joined RB Hunt & Partners where he relocated to Tokyo, working closely with Nakamura, a Japanese company. On his return to London he set up Thornton Chartering. Thereafter he founded PBS Shipping Associates, working closely with a number of Russian shipping companies, prior to establishing Anglo-Georgian Shipping Company, a pioneering partnership with the Georgian Shipping Company to assist that country to rebuild its merchant shipping fleet after the break-up of the Soviet Union.
Should any members wish to attend the gathering, please contact Tim Broke-Smith, via PBS@bonobo.co.uk and details will be provided. At Peter’s request his funeral was held privately. Donations welcomed to Cancer Research UK in Peter’s memory at: https://fundraise.cancerresearchuk.org/page/broker.