- Baltic Exchange collaborates with GeoSpock to bring data insights on shipping emissions
The Baltic Exchange is collaborating with big data company, GeoSpock, to build the world’s most advanced maritime spatial database. This digital initiative will have a specific focus on shipping emissions, enabling members and the wider maritime market to have unrivalled access to data insights and visualisations.
Speaking on the announcement, Baltic Exchange CEO, Mark Jackson said:
“As our market embraces digital technologies, the Baltic is in a unique position to facilitate the industry’s digital growth. To achieve this, it is imperative that we adopt and utilise the most advanced technology and develop the most holistic database available to our industry.
“The database we are building with GeoSpock will act as a hub of information that can be constantly added to and improved on, but more importantly, interacted with. We believe it will set a global standard for a stronger data strategy in the shipping industry.”
GeoSpock CEO, Richard Baker said:
“GeoSpock is delighted to be working with the Baltic Exchange on this project, this is something we are uniquely built for and incredibly excited to be involved in.
“We believe this new partnership will set a gold standard for the industry to follow. Analytics at this scale has the capability to improve not just the industry, but to make the world less polluted and more prosperous.”
Shipping currently generates huge quantities of data, whether it is onboard ships, in port, or through the wider logistics chain. Presently, this data is siloed, with no central pool that the industry can utilise.
This new initiative aims to change that. In addition to data specific to shipping emissions such as fuel usage, voyage route and journey time, wider information on details such as location and weather will also be captured. These datasets will allow the industry to make more informed decisions when developing emissions initiatives. Companies will be able to analyse and optimise shipping on a global scale, while providing regulators and governments with a new level of transparency.
The datasets and data science tools will be designed and built by GeoSpock. The GeoSpock Spatial Big Data platform, built on AWS Cloud, will be able to ingest and provide context to huge quantities of global maritime data provided by Baltic Exchange members and industry participants.
- Member update: 7 August
The following company has applied for Corporate Membership:
Company Individual Nanjing Ocean (HK) Co Ltd
Mr Xiang Wang Chen Mr Cheng Hui Liu Mr Jing Ni Mr Chao Zhang
The following individuals have applied for membership of an existing member company:
Company Individual ADM Investor Services International Limited
Mr Darran Clapton Clarksons Platou Mr Harry Demiris The Arrow Group of Companies
Mr James Charman The Baltic Air Charter Association Ms Dominique Trinquet Torm A/S
Mr Murat Demir
Any comments should be passed to Karen Karanicholas by 14 August 2019.
- TradeWinds Shipowners Forum Greater China 2019
The Baltic Exchange is supporting the annual TradeWinds Shipowners Forum Greater China 2019 in Shanghai.
The event takes place on 5 September and all Baltic members who would like to attend are entitled to a discounted rate.
To obtain this discounted rate, please email email@example.com and state that you are working for a Baltic member company.
For more information, click here.
- 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:
- Memorial service for Peter Kitching
A memorial service for Peter Kitching will be held at 1100am on Friday 6 September 2019 at St Paul’s Church Knightsbridge, 32 Wilton Place (next to The Berkeley Hotel) followed by a reception at Royal Yacht Club Knightsbridge.
All are welcome to attend.
- Goodbye globalisation, hello ‘slowbalisation’
Is globalisation on the way out? Researchers at American investment bank and financial services firm Morgan Stanley argue that it might be as a mix of geopolitical shifts and secular trends are “conspiring” to slow down or reverse globalisation. However, trade tensions form only part of the story.
Globalisation has been the dominant trend since the late 1900s and few doubted its continuation. Yet, while tariffs may be the most visible barrier, other trade blocks, like new foreign investment review in the US, are weakening the business incentive to globalise corporate footprints and supply chains.
“Meanwhile, a growing reliance on leaner manufacturing approaches, changes in consumer preferences and increased purchasing power in emerging markets are emphasising regional trade over global trade,” Morgan Stanley said. “This all adds up to what some economists are calling ‘slowbalization’.”
On a downer
In July, American business news channel CNBC featured Morgan Stanley’s Hans Redeker, global head of foreign exchange strategy, speaking of US levies on Mexico and China constituting examples of globalisation deteriorating substantially. In the same report, Eoin Murray, Hermes Investment Management’s head of investment, said that the current trade war is a tech war witnessing globalisation “unravel” and that in the future, there will likely be trading regions rather than global trade as currently perceived.
Daily, there are reminders that globalisation is ending
Currently, trade in services is increasing faster than trade in goods, and emerging market nations have got sufficiently rich that they’re now consuming more of the goods they sell – meaning that globalisation could be the victim of its own success. McKinsey & Company has calculated that the proportion of products travelling across borders dropped from 28.1% to 22.5% from 2007 to 2017.
Something else altering trade patterns is the move towards just-in-time logistics. McKinsey & Company notes that today just 18% of goods trade is based on labour-cost arbitrage, with this potentially reducing further as businesses seek to streamline their supply chains and bring more automation into the fold.
Michael O’Sullivan, Credit Suisse’s former chief investment officer, is author of The Levelling: What’s Next After Globalization, a book first published in May which “explodes the idea and the end of globalisation, and potentially what comes next”. In it, he notes that daily there are reminders that globalisation is ending. According to his publication, Brexit and Trump constitute part of stage one of “a paradigm shift that will see the disintegration of the world order that we have come to know over the past 30 years, such as globalisation”. The book offers four key issues in a post-globalisation era: political discontent, economic growth, debt and central banks and, finally, geopolitics.
“We’re now going into a multipolar world where at least three big regions do things increasingly different, be it through democracy, the Internet, etc.,” Mr O’Sullivan says. “I think also many of the institutions of the 20th century … in many cases have fulfilled the roles that were set for them, in other cases are becoming defunct, and I think attention needs to shift now to the institutions of the 21st century — for example, a global climate authority with policy teeth, a body that can oversee the Internet or cyberwar. And also, I think you get new alliances and constellations between countries.”
Not over yet
However, one article from Bloomberg asserts that globalisation isn’t dying off — it is simply going through an evolution process. The article claims that while the “populist assault on globalisation” by US President Donald Trump has raised concerns about its slowdown, or even its end, “those fears ignore what globalisation really is, and how it is evolving”. Globalisation, the article notes, has been around since time began and isn’t static. While currently it is associated with the shipping container, or the outsourcing of jobs in advanced economies and the rebirth of great trading economies like China’s, the world is entering an era where “data is the new shipping container and there are far more disruptive forces at work in the world economy than Trump’s tariffs”.
“For good or bad, we are more exposed to a global culture of ideas than we have ever been, and we are only becoming more global as a result,” Bloomberg says.
Bloomberg also argues that the amount of cargo shipped around the globe is not the best measure of globalisation. If only the trade in physical goods is considered, globalisation might be slowing, but this fails to take “an explosion of the digital economy” into account — and “increasingly, the digital realm is where the 21st-century economy lives”. Additionally, as economies mature, the rights to make something are being sold to someone in another nation, rather than it being shipped there. Although these changes mean less physical trade in goods, this means globalisation is evolving and maturing rather than slowing.
“Traditionally, trade data measures shifts in goods by recording products’ value when they leave a port,” the article says. “But the parts in products often come from other countries these days. Even those parts can be made up of parts from elsewhere. That means a more accurate measure of trade and economic relationships involves recording where value is added.”
Morgan Stanley agrees that “without question, the shifting tides of trade create a complex dynamic”.
“That said, investors can start to think about the broad implications through a relatively-simple framework based on key questions: How sensitive is a company’s product or process to a country’s economic or national security? How much does its production rely on a global supply chain, and does that reliance continue to make sense? The companies most vulnerable to ‘slowbalization’ are those that deal in sensitive technologies and depend on supply chains that are globally diffuse.”
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.
- August 2019 non-publishing dates
Due to Singapore National Day and Hari Raya Haji, the Baltic Exchange will not be publishing its BEP-Asia, BES-Asia and BITR-Asia on Friday, 9 August 2019 and Monday, 12 August 2019. The BEP-Asia, BES-Asia and BITR-Asia will be published again on Tuesday, 13 August 2019.
Due to UK Bank holiday, the Baltic Exchange will not be publishing its Dry and Tanker (including LPG) Assessments on Monday, 26 August 2019. There will also be no publication of FFA volumes, Dry Option Volume Estimates or Baltic Forward Assessment curves (dry & wet) on this date. All indices including FFA volumes and estimates and BFA curves will be published on Tuesday, 27 August 2019.
Questions and comments should be directed to email@example.com