- Baltic Briefing Bunker Forum: 21 March
The Baltic Exchange will be holding its first briefing forum of 2019 on 21 March. Chaired by Philip Bacon, Icthus Marine, the event will address the issues, developments and pitfalls surrounding bunkers and bunker markets, with a more specific focus on the marine side of the bunker lifecycle through the three segments; buy, receive and use.
Experts from purchasing and Lloyds Register, will bring clarity to specs, the issues and assumptions that cause frustrated contracts when taking delivery. On consumption and performance, the StormGeo shipping team will give their insights into charter party warrants and all presentations will be set against a backdrop of how counterparts scrutinise operational performance and add certainty to what can be an uncertain element of shipping business.
The Briefing will be followed by a Wine Tasting of Italy (£25 per head) hosted by the Baltic Wine Society. Those interested are invited to join wine enthusiast, David Hughes in the Members Bar who will steer tasters through a journey from the wine terraces of the snowy Tyrolean Alps to the southern soaked isles of Italy. Attendees will be able to enjoy exciting new and sophisticated old varieties that are reshaping the world of wine as we know it. Accompanied by Mediterranean nibbles, all members and their guests are welcome.
The Forum commences from 5.30pm, with the wine tasting at 6.45pm. For further details, click here.
- Baltic Academy to launch at Singapore Maritime Week
As part of Singapore Maritime Week (8-12 April 2019), the Baltic Exchange will be launching the first of its new Baltic Academy shipping courses.
Focussing on the challenges faced by today’s shipping professionals, these one-day courses take a practical approach and deliver what you need to know. Led by experienced industry practitioner, Mikal Boe, the courses are designed to be instructive and interactive and to engage participants in real-life scenarios.
The courses to be launched are:
Counterparty Risk Management for Shipping
Thursday 11 April 2019 | SGX Centre 1, Singapore Counterparty Risk Management for Shipping
Suitable for anyone interested in and potentially affected by credit default risk in today’s shipping markets.
Indexation and the Creative use of Baltic indices in Risk Management for Shipping
Friday 12 April 2019 | SGX Centre 1, Singapore
Suitable for anyone responsible for the commercial management of ships, freight and risk exposure.
Each course is priced at S$2,200, which includes lunch and course materials.
To find out more, click here.
- Collecting what’s due
The Baltic’s Dispute Resolution Service has seen a busy first half of the year with 15 cases for Mike Dunwell, who heads up the service, to consider. Designed to allow Baltic members to recover both small and large amounts, two-thirds of this year’s cases have already been concluded. That’s $375,000 collected for free on behalf of Baltic Exchange members for relatively small amounts of money that might otherwise remain outstanding.
Last year, the Baltic assisted in the recovery of US$3.5m, up from US$1.1m in 2017. While this increase is due in part to wider take-up in the number of cases being reported by P&I clubs and members looking to the Baltic for help, the increase in resources made available by the Baltic to resolve cases and help to manage the increasing demand is also a significant factor.
For those who haven’t used it or are unaware of its existence, the Dispute Resolution Service is a complimentary resource run by the Baltic Exchange for its members. It is designed to recoup money owed to members, mainly relating to commission in the case of brokers and hire/freight where owners are concerned. However, it can also be used to ensure that an arbitration award is honoured, or to highlight any form of malpractice according to the Baltic Code.
When a breach in the Baltic Code of Conduct has occurred, and appropriate reparations have not been made, the party is faced with the possibility of being posted by the Baltic Exchange. The threat of being published as an unfit counterparty in front of the global membership, represents a final, highly undesirable, penalty for those unwilling, or unable, to make good on the losses caused. This action is recognized both within the shipping community and by the wider financial and commodity markets, as well as due diligence agencies operating across other related sectors.
The Dispute Resolution Service is free of charge to members and in the past, we have extended this offering on the same basis to non-members via P&I clubs and legal firms acting for clients. To provide further resources for the service, non-member companies using the facility will be charged 15% of the total recovered, capped at a maximum of £15,000 per case. The Baltic’s goal is to increase the benefits of being a member, and this fee to non-members will enable the Baltic to pursue more cases and give better support to members seeking help, while still providing a much relied on service to the industry at large.
“It’s a great service because it means that if we are successful, the member doesn’t need to seek legal advice which can be costly and time consuming.” – Mike Dunwell, Head of Dispute Resolution Service.
We would like to express our appreciation for the Baltic’s hard work, patience and persistence in getting our commission settled which, in spite of all our efforts, remained outstanding for nearly one and a half years.
We realise that this was not an easy task but thanks to your efforts the matter was finally resolved.
It was the first time in our history that we had occasion to use this service which the Baltic provides to its members and it was a good reminder of the importance of being a Member of a historical institution such as the Baltic Exchange. – Prominent Greek Dry Cargo broker.
We highly recommend the Baltic Resolution Service. It is exceptionally user-friendly and responsive and, most importantly, it delivers results. Recently, it helped us resolve a long-standing dispute and recover a large sum of money. – Leading bulk and tanker operator.
As a major Futures broker, we requested the assistance of The Baltic Exchange Dispute service with five clients who had failed to pay for some time. Within 15 days of initial contact four out the five parties have paid very promptly and the fifth is still pending.
In our view having membership with the Baltic Exchange is very good value for money.
The Baltic Exchange and SGX contacts were also very influential as any Shipping company would not want to be posted on the Baltic Exchange or have this kind of publicity.
Mike Dunwell is very easy to talk to and we trust him and his team with his style and powers of persuasion chasing clients for payment. – Major worldwide Broker.
Globally, Baltic Exchange membership numbers over 600 companies, continuing to grow this number so that the Baltic remains truly representative of maritime markets is a key ambition. The Dispute Resolution Service offering will benefit the wider industry by encouraging non-members to join, saving them time and money individually as well as helping to reduce the number of outstanding debtors on the books across the industry.
If you are interested in finding out more about membership or the disputes service please contact:
Mike Dunwell for the Dispute Resolution Service on +44 (0) 20 7369 1631 / M +44 7860 902547 / email@example.com
Crispin Eccleston for membership details on +44 (0)20 7369 1654 / firstname.lastname@example.org
- Meeting the new Baltic head of Asia
There is a fresh face at the Baltic Exchange’s Singapore office. Lu Su Ling is the Baltic Exchange’s new head of Asia, stepping into the shoes of Chris Jones and supported by three new hires. With a growing base of members from the Asian region and more chartering activity handled by Singapore-based owners, brokers and traders, the need for a stronger Baltic presence in the region is obvious.
New team members
Andy Symonds joins as a senior freight market reporter having previously worked for Berge Bulk, Trafigura and most recently Jaldhi; Nadia Mirza, a former Howe Robinson and Clarksons shipbroker, will lead container business development, and Mark Ma, a former tanker chartering specialist who has previously worked at Stolt Nielsen, Oxide Chemicals and Howe Robinson, has come onboard as the Asia-Pacific sales manager. Su Ling’s role will be to manage and support the Baltic’s growth across the region, with a particular focus on member engagement and growth as well as new services such as escrow, Asian-centric routes and training.
“The Baltic’s Singapore office is there to complement London and to capitalise on Singapore’s strategic position as both a maritime and commodities trading hub,” she says.
Since the Baltic joined the SGX family in November 2016, there has been a marked growth in the number of Asian members. Of the Baltic’s over 650 corporate members, about 20% count Asia as their country of origin. Three quarters of these joined the Baltic in the last 10 years, and around 40 have joined in the past two years alone. However, according to Su Ling, whilst the Baltic Exchange has a strong profile in Singapore, there is still much work to be done across the rest of the region.
“I’m so excited to be taking on this role at such an important moment in the Baltic Exchange’s long history,” says Su Ling.
Malaysian born, Su Ling was educated at the University of Melbourne in Australia where she completed a Bachelors degree in commerce. She has worked at SGX for most of her career in business development and strategy roles. A chartered accountant by training, her last role was as Chief Operating Officer of the Energy Market Company (EMC), the Singapore-based wholesale electricity marketplace. Like the Baltic Exchange, EMC is a wholly owned SGX subsidiary and Su Ling’s role was to facilitate its integration with SGX, negotiate a revenue framework with the regulator and support its efforts to expand into the provision of consultancy work for other markets in Asia and the Middle East. EMC is on course to double its profits over the next five years following these efforts.
Whilst the unregulated global shipping markets are completely different to the highly regulated Singapore electricity market, the added value that SGX is bringing to both sectors is similar.
“I do not have a shipping background, but I can bring my business development and strategy experience to bear in working with Baltic’s experienced team of shipping professionals. I strongly believe that together, we can build on the fantastic Baltic brand, services and heritage,” says Su Ling. “Being a member of the Baltic Exchange is about understanding the ethos of “our word our bond” and putting ethics and integrity at the centre of any commercial transaction. I think that we can leverage on this to deliver a wider range of services than ever before.”
She adds: “Baltic Exchange membership is about so much more than just data.”
Before taking on the role, she says that she was very aware of the Baltic Exchange. “It’s an organisation which absolutely punches above its weight and has a big presence in the shipping world and beyond. It’s the custodian of an extremely valuable set of data used not only in the shipping industry but in the wider business community. It’s my job to help Baltic take this further.”
She says that one of her first tasks will be to get out and about and meet Baltic Exchange members. She wants to engage more closely with shipping industry players across the region and plans to speak about the role of the Baltic Exchange at the Asian Shipowners Association meeting in Bangkok this May. The upcoming Singapore Maritime Week (6-14 April) will also be an opportunity to meet the market.
According to Su Ling there needs to be a focus on rolling out new products and services. The first of these, an escrow service for sale & purchase transactions, has good potential. The service allows the significant deposit funds required ahead of a vessel transaction to be held in a neutral, third party account with the AA-rated OCBC Bank in Singapore. Based on a new Baltic Escrow Form, the service is subject to SGX‘s detailed Know Your Client (KYC) and Anti Money Laundering (AML) compliance procedures.
In addition, Baltic plans to roll out new training programmes, with an initial run of two risk-management courses for shipping professionals due to be offered during Singapore Maritime Week. Over time, the aim is to offer courses covering a broader range of commercial maritime subjects.
Also high on the agenda is the commercialisation of the Freightos-Baltic partnership. Launched in 2018, the two organisations are working closely on the FBX Index, which is currently a weekly container market assessment covering the movement of boxes on 12 main trade lanes. The Baltic Exchange is providing its index production and regulatory know-how to support a credible benchmark for container ship operators, forwarders and shippers to build index-linked contracts.
Clearly Su Ling ’s experience of turning big visions into reality will be vital in helping expand the Baltic Exchange’s presence across the Asia region.
Su Ling career history
BALTIC EXCHANGE, Singapore 2019 – present
Head of Baltic Exchange Asia
Driving business development activities in Asia including membership engagement and growth, and promoting Baltic index data and escrow services.
ENERGY MARKET COMPANY, Singapore 2016 – 2018
Chief Operating Officer
SINGAPORE EXCHANGE LIMITED, Singapore 2001 – 2016
Head of Post Trade Services, Equities, and Fixed Income, 2014-2016
Head of Corporate and Market Strategy, 2001-2014
Prior additional experience in capital markets policy at the Securities Commission Malaysia, corporate finance at Arab-Malaysian Corporation, and corporate restructuring and audit at Arthur Andersen.
- Baltic ICS lecture series: 27 March
The next edition in the current series of Baltic ICS lectures will take place on 27 March. Presented in Athens, London, Shanghai and Singapore the lecture will focus on financial tools, specifically ship finance and Forward Freight Agreements (FFAs).
Singapore | 27 March | 13.00
Shanghai | 27 March | 13.00
Dr. Zhao Jin Song
Lawyer & Arbitrator
Athens | 27 March | 18.30
AMN Bulk Carriers Inc
London | 27 March | 13.00
Philippe van den Abeele
Consortium Maritime Trading
The lectures are free to Baltic and ICS member companies.
For more information on the lecture or to register your attendance, click here.
- ICS Prize Giving Ceremony 2019 photos now available
Photos from last week’s Institute of Chartered Shipbrokers (ICS) 2019 Prize Giving Ceremony in Singapore are now available here.
The Baltic Exchange’s new head of Asia was in attendance to present the Baltic sponsored prize for the Introduction to Shipping module, which was awarded to Moitra Somenath. With Moitra not in attendance, the prize was accepted on his behalf by a member of the ICS Singapore committee.
- Singapore Maritime Week: British High Commissioner drinks reception
The British High Commissioner, Scott Wightham, and Baltic Exchange CEO, Mark Jackson, invite guests to a drinks reception at the British High Commissioner’s Residence.
The event will be held on 11 April from 6pm. Attendance requires completion of a pre-registration form which can be completed here.
Those attending are reminded that the British High Commission operates a strict security policy. Please bring your invitation and a valid photo identity with you. The British High Commissions reserves the right to search guests & belongings. Please restrict the size of bags, as there are no facilities for storing personal items. Haversacks and / or shoulder bags (except small bags measuring less than 30 cm by 40 cm) & laptops will not be permitted.
- FFA training courses: London & New York
There are still places available on the Baltic’s upcoming FFA training courses in London and New York.
Freight Derivatives & Shipping Risk Management
– The practicalities of FFA trading
– Freight rate options
– Bunker risk management
– Interest rate risk management
– Ship price risk management and portfolio theory
– Value at Risk in shipping
– Measuring credit risk
London 11-12 March
New York 8-9 April
Advanced Freight Modelling & Trading
– Spot price dynamics
– Forward curve construction
– Technical analysis & freight trading
– Risk management using options
– Volatility models
– Pricing freight options
– Real options in shipping
– Risk management of options positions
London 13-14 March
New York 10-11 April
Click here for full details, including booking.
- Member update: 6 March
The following individuals have applied for membership of an existing member company:
Company Individual Banchero-Costa & C. s.p.a. Mr M Rocca Mr G Rocca Mr M Granieri The China Navigation Company Ltd Mr M M Miller Anglo American Marketing Limited Mr Y Zeng Howe Robinson & Co Ltd Mr R E Jones
RWE Supply & Trading GmbH Ltd
Mr A G Thistlethwayte
Southern Star Shipping Co Inc
Mr G Varelas
Any comments should be passed to Karen Karanicholas by 13 March 2019.
- Baltic Irish Night: 14 March
With over 400 attendees from across the globe, the Baltic Exchange Irish Society dinner is one of the best attended shipbroker events of the year.
The night opens with a drinks reception in the Porter Tun Room, before dinner in the Grand Hall. Toasts and speeches follow from the Chairman and guest speaker, before the traditional sing-along.
The event will take place at The Brewery (EC1Y 4SD) from 6pm on 12 March 2020. Tickets are now available at £95pp. For further details or to purchase tickets, please contact Irish Society Treasurer, John Ollett, email@example.com / 02071993497 / 07794 274 885.
- BESA: Warwick Cup
This year’s Baltic Exchange Sailing Association (BESA) Warwick Cup will take place on the 18-19 May at Seaview, Isle of Wight.
There are no stipulations on who may helm each boat and after every race there will be a chance to rotate crews. So teams/squads can be as large as you like, giving everyone a chance to have a go on the water. There will also be opportunities for those not racing to witness the action close up and take photos from one of the Yacht Club’s fast tenders or just to go for a spin.
The tentative schedule is as follows:
- Friday PM: Arrive Seaview
- Saturday: Racing Seaview Mermaids http://www.seaviewmermaids.co.uk
- Saturday Evening: Three course dinner at the Sea View Yacht Club with late bar/tombola/prize giving
- Sunday AM: Racing Seaview Mermaids before lunch/prize-giving. Should be away by 1400 ish
This event counts towards the David Bradley Memorial Trophy
Entrance forms can be found here, these forms and fees, which includes the three course dinner, as well as Baltic Exchange membership must be submitted by 28 April 2019. Full rules can be viewed here.
For any further information, contact on the details below.
Eggar Forrester Shipbrokers – CW Kellock & Co Ltd
Fifth Floor, 2 London Wall Buildings, London Wall, London, EC2M 5PP
- Member meeting and ASBA Baltic reception: CMA
The Association of Ship Brokers and Agents (USA) (ASBA) and the Baltic Exchange will be holding a drinks reception on the sidelines of CMA 2019 at the Dinosaur Bar-B-Que.
The event commences at 6.30pm on Tuesday 2 April. Those interested in attending are invited to RSVP by 25 March here.
Ahead of the drinks reception, the Baltic Exchange will be holding a meeting for members at Serendipity Labs, 700 Canal Street, Stamford, CT 06902.
The meeting starts at 4pm, with all members welcome to attend. Those attending will have the opportunity to hear about recent and proposed developments on the benchmark indices and to also discuss other relevant matters including data policy and the IMO 2020 Sulphur Cap.
Those interested in attending are invited to register here.