- Using Baltic Exchange data for settlement
The Baltic Exchange publishes daily assessments for the dry bulk and tanker freight markets which are widely used by shipowners, traders and charterers. On occasion Baltic data is referenced inside contracts. When used in this way, counterparties are required to have a valid Baltic Data licence for the entire duration of the contract. This includes, but is not limited to, Time and Voyage Charterparties, Contracts of Affreightment and FFA agreements that are not given up for clearing. Both counterparties are required to have a valid Baltic Data licence.
Baltic Data is based on assessments made by Panellist Brokers. One of the ways to obtain a Baltic Data licence is to nominate a Baltic Panellist Broker in the contract.
Click here for further information and full terms and conditions.
Licensed Baltic Panellists
Barry Rogliano Salles
EA Gibson Shipbrokers
Ildo Chartering Corporation
John F Dillon
Simpson Spence Young
Yamamizu Shipping Co
Tanker & Gas
Barry Rogliano Salles
EA Gibson Shipbrokers
Gulfstream Tanker Chartering
Mallory Jones Lynch Flynn
Poten & Partners
Simpson Spence Young
True North Chartering
- Member update: 31 July
The following company has applied for Corporate Membership:
Company Individual ASCA Maritime FZE
Mr N Chatzipetros Ocean Longevity Shipping and Management Co Ltd
Mr S Lam
The following individuals have applied for membership of an existing member company:
Company Individual BHP Billiton Freight Singapore Pte Ltd
Ms M Lavadia Braemar ACM Shipbroking Ltd Mr C Boon China Steel Corporation
Mr F Chang Mr T H Hsieh Mrs P Y Wang ENGIE Energy Management scrl Mr R Dickgreber Koch Supply & Trading LP
Mr T Fierbaugh Mr J Irvin
Any comments should be passed to Karen Karanicholas by 7 August 2019.
- Funeral details following the passing of Philip Clarkson
The funeral service for former Baltic broker Philip Clarkson, who passed away on 18 June, will be held at 2.30pm Monday 12 August 2019 at St Peter’s Chapel, Exeter and Devon Crematorium, Topsham Road, Exeter EX2 6EU.
All are welcome to attend, and if attendees could advise the Baltic Charitable Foundation at the contact address/email below it would be appreciated.
If desired, donations can be made to the Baltic Exchange Charitable Foundation:
Baltic Exchange Charitable Foundation
Secretariat | 38 St Mary Axe | London EC3A 8BH
Office : 0207 283 6090 | E-mail : firstname.lastname@example.org
For any further information, please contact Jackie Harrison.
- Space for rent at the Baltic Exchange
The Baltic Exchange wishes to inform members that room RLG10A (546 sq ft) on the lower ground floor of the Baltic Exchange is now available for rent.
For more details, please contact Mark Read. Pictures of the space can be found below:
- Passing of former Baltic Member, Bernard Miles
Members will learn with deep regret that Bernard Miles passed away on 27 July 2019.
Mr Miles was first elected a member of the Baltic in 1966 representing Simpson Spence & Young.
He went on to represent H Clarkson & Co Ltd (1972-81), Simpson Spence & Young 1981-1983, Walter E Frank & Co (Shipbrokers) in 1984, Acorn Shipping 1984-94 and Oaks Shipping 1995-2010. In 2012 Mr Miles became a Retired Member of the Baltic.
His funeral, to which Members are welcome, will be held on Thursday 8 August 2019, 1000 at Tunbridge Wells Crematorium, Cemetery Chapel, Benhall Mill Road, Royal Tunbridge Wells, Kent TN2 5JJ and afterwards at St Julians Club, Underriver, Sevenoaks, Kent TN15 0RX.
If further information is required please contact Bernard’s son, Jason, who’s email address is: email@example.com
- WTO: ambiguous fortunes for trade
Sustained GDP growth could give world trade a lift this year, yet it remains to be seen whether this boost will endure, warns the World Trade Organization (WTO). According to the body, mid-last year, economic growth slowed more than anticipated, causing central banks and governments to take up more expansionary monetary and fiscal policies. This seems to have delivered a GDP increase to major economies in the first quarter of 2019, but there are no guarantees this will be maintained.
Tensions remain key
The comments are taken from the WTO’s World Trade Statistical Review 2019, a 176-page document exploring the latest trends concerning world trade, with analysis of both trade in goods and services and performance of frontrunning players. The report found that China continues to expand quicker than the majority of the other manufacturing economies, while the US marked a healthy output hike in Q1 2019. However, further trade tension escalation could “derail” both GDP growth and trade, it says. The report also states that the Global Manufacturing PMI, compiled by JPMorgan Chase and IHS Markit, suggested contraction in April (49.0) but this stabilised in March (48.9), which could be an early signal of a global trade turnaround. However, any substantial improvement would likely rely upon trade tensions easing.
According to the report, last year, global merchandise trade grew by 3%, just above the 2.9% rise in world GDP over the same timeframe. However, this was substantially less than the 4.6% growth observed in 2017. The WTO puts this loss of momentum in part down to growing trade tensions and historically-high trade restriction levels.
“The WTO’s latest trade-monitoring report confirms that trade-restrictive measures are on the rise,” said Roberto Azevêdo, WTO director-general. “Trade covered by import-restrictive measures recorded in the last trade-monitoring report — mid-October 2018 to mid-May 2019 — is estimated at $339.5bn. This is the second-highest figure on record, after the $588.3bn reported in the previous report — mid-October 2017 to mid-October 2018. If trade is to pick up in 2019-20, trade tensions must be resolved.”
Last year, global merchandise trade grew by 3%
“WTO members implemented 38 new trade-restrictive measures during the latest review period,” the report states. “While fewer measures were introduced than in previous periods, the scale of those measures is much increased in terms of their trade coverage and the level of tariffs imposed. Trade measures implemented by G20 economies accounted for the vast bulk of the trade covered by import-restrictive measures.
“Out of the 38 new trade-restrictive measures recorded, more than 80% were applied to imports. Tariff increases accounted for more than half of all import-restrictive measures, followed by a range of import bans, special safeguards and import taxes. With respect to exports, most of the measures taken were duties, followed by bans and stricter customs procedures.”
Since 2008, world exports of merchandise trade have increased by 20% in value terms. Last year, global merchandise trade totalled $19.67tr, with its value increasing by 10% that year. The exports growth was predominantly driven by elevated energy prices, while Asia was the principal contributor to the imports rise. China was the world’s leading merchandise trader last year, and during this period, over 50% of merchandise trade was held by 10 economies: China; the US; Germany; Japan; the Netherlands; France; Hong Kong, China; UK; South Korea; and Italy. China was the biggest exporter last year while the US was the greatest importer. Significantly, the WTO highlights that trade growth for nine of the top 10 traders remains below 2008 pre-crisis levels.
Global trade and GDP have increased in tandem for the last 10 years. Both have gone up by 26% since 2008. Furthermore, over the past 10 years, India; Hong Kong, China; Mexico; and Ireland rose the most in global rankings among the top 20 goods and services traders. Zooming in on specific sectors, global merchandise exports of fuels and mining products, manufactured goods and agriculture increased by 23%, 8% and 5% respectively.
With digital technology having skyrocketed in importance in the last few decades, nobody can doubt that its influence on trade will increase in the near term. However, the WTO says that questions remain concerning digital trade’s measurement and scope.
“The question surrounding digital trade is whether it facilitates existing international trade or whether it creates additional trade, or both,” it says. “Sometimes it is said that trade growth has been dampened by not measuring digital trade adequately. … Do conventional trade statistics reﬂect economic reality?
“Current trade statistics cannot quantify the level of international trade attributable to digital transactions, i.e. to digital ordering or digital delivery. Both these components together, however, can be used to determine the quantity of digital trade. In other words, digital trade can be explained via the nature of the transaction, i.e. whether it is digitally ordered or digitally delivered.”
When it comes to the future of trade, Asian economies are the places to look to. According to the World Trade Statistical Review 2019, Asian economies boast the biggest growth rates with regard to contribution to global value chains (GVCs), meaning they are trading with international industrial partners more and more. Over the last decade, the continent’s stake in world merchandise exports went up by six percentage points, increasing to 34% last year from 28% in 2008.
However, the WTO says that developing economies are playing increasing parts in GVCs too. Notably, in the majority of the last 10 years, developing economies outperformed or equalled developed economies’ performance in global trade. Another point of note is that from 2011, developing economies’ exports to other developing economies surpassed their exports to developed economies. In 2018, developing economies took 44% of world merchandise trade. They exported $8,779bn in merchandise trade in total, and $193bn of this was from least-developed nations.
The report also discussed trade in transport. Global exports of sea transport services decreased at an average annual rate of 1% between 2008 and 2018. As for exports and imports of transport as a whole, in 2018, global exports of transport stood at $1,017bn, a yearly percentage change of 7% — in 2017, the annual percentage change was 9%, though 7% is still much better than the figure of 2016. Imports of transport were worth $1,215bn last year, a percentage change of 9%. This percentage is unchanged from 2017, but again, much better than that the percentage change of 2016.
The Baltic Exchange will hold its next Shipping Economics & Investment course on 13 and 14 January 2020 in UK capital London. More information can be found here.
- An evening with Paralympic sailor Hannah Stodel
Co-hosted with HFW at their London office, BESA is delighted to invite its members and the wider Baltic Exchange community to a special presentation on Wednesday 9 October given by British Paralympic World Champion, Hannah Stodel. Hannah will share the inspiring story of her success and discuss the next challenge she has set herself: to become the first disabled sailor ever to take on the Vendée Globe. Racing 24,000 miles around the world – nonstop and without any assistance – Hannah plans to set three major records along the way.
Registration for the event begins at 5.15pm, presentation at 5.45pm and networking over drinks and canapés at 6.30pm.
About our speaker
Three times World Champion and four times Paralympian, Hannah Stodel was born missing her lower right arm but she is a force unto herself and it has not stopped her from competing in able-bodied competition. Besides her three World Championship titles and scores of other results and awards, she’s been the global leader for reinstating disabled sailing into the Paralympic games and is an ambassador for Ditch the Label (anti-bullying) charity in London. With a fierce determination, Hannah is now undertaking the greatest challenge yet, her personal “Everest of the Seas” by competing in the Vendée Globe. We very much hope you can join us for what should be an interesting and inspiring event.
Please RSVP if you wish to attend (including your intended number of guests) to Philip Bacon (firstname.lastname@example.org). Alternatively please contact Amanda Hastings, BESA Social Secretary, (email@example.com) or Camilla Robertson at HFW (firstname.lastname@example.org).
- Finn Trophy – 21 Sept, Isle of Wight
This annual event traditionally brings together two or three flotillas of ocean-going boats that compete as teams in name of The Baltic Exchange, Lloyd’s of London, and sometimes The London Stock Exchange. This year, we have agreed with several other City-based sailing clubs to mutually open our summer / post-summer events, so we might have other teams competing, e.g. John Lewis or The Portcullis Club.
On Friday 20th September evening, crews gather in Cowes for dinner and light refreshment, in concentration for the athletic feats of the following day. Early on the 21st, a starting gun will see the flotillas race off neck to neck round a dedicated course within the Solent, which will be shorter than last years’ Nab Tower race. After the racing and the traditional ‘apres’ social on Marina and nearby watering holes, Saturday evening the motley crews regenerate themselves into a glamorous gathering for Dinner at the Royal Yacht Squadron and perhaps prize giving, if the winners can be decided.
Companies or groups may enter boats and crews in the Racer or Cruiser categories for Team Baltic; if you are not part of one, please get in touch as we will be seeking to accommodate individuals on Team Baltic boats in need of crew. There will be Special Provisions for Young Baltic Association members.
If you have never sailed, don’t be daunted – this is a perfect chance to try it out!
Please contact Philip Bacon for further information and entry forms.