- The Chairman’s Cocktail Party
One of the standout events of the Baltic calendar, the Chairman’s Cocktail Party, will take place this year on Wednesday 13 May.
Attended by 600 guests, this historic event was originally held on the floor of the old Baltic Exchange and celebrated the end of a Baltic Chairman’s two-year tenure. Now held at Christ Church Spitalfields in London, it brings Baltic Members and invited guests from across the globe together for a unique annual networking and social event.
Tickets are available here.
We anticipate this to be a sell-out event. Therefore we suggest securing your tickets early to avoid disappointment.
Pictures from last year’s event are available to view here.
- New company “posted” by Baltic
Members are advised that a new company has been “posted” by the Baltic Exchange on the password protected area of www.balticexchange.com. Click here for further details.
The Baltic Exchange has a system of “posting” which dates back to its trading floor days whereby the exchange lets its entire membership know if a company has withheld payment to a member, perhaps by not paying a commission or honouring an arbitration award.
Members of the Baltic also have access to a comprehensive database of companies with whom other members have experienced difficulties in the past.
- International Malaysian Society of Maritime Law conference
The Baltic Exchange is supporting the International Malaysian Society of Maritime Law’s conference in Kuala Lumpur, 18-19 March. Focusing on “Sustainability and Growth in the Post-2020 Era”, the conference features an address by the Attorney General of Malaysia as well as presentations from Western Bulk, Malaysian Shipowners Assoc, Johor Port and the Minister of Transport.
The Baltic Exchange’s Mark Ma will be joining a discussion panel.
Click here for further details.
- The Baltic Exchange Irish Society Dinner
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, firstname.lastname@example.org / 02071993497 / 07794 274 885.
- Tanker Derivatives Lunch
Join the Baltic on 4 March at the Tanker Derivatives Lunch for a meeting with the FFA Brokers Association and an in-depth analysis of the physical freight, tanker, LNG and FFA markets.
Registration and further details here.
- Baltic Pub Quiz 2020 Review
The annual Baltic Exchange Pub Quiz took place on 13 February at The Lamb, Leadenhall Market.
A packed room saw 12 teams of six testing their knowledge on a variety of subjects. Howe Robinson’s Simon Cox took the reigns as Quiz Master for the first time this year, putting on a good evening.
Throughout the night Hartland and Swire Bulk were neck and neck out-front, with Lavinia bringing up the rear. In the end, Hartland were the winners of the 2020 Charles Macmillan Cup, with Swire Bulk taking second and Pacific Basin in third. The win for Hartland provides valuable points towards the David Bradley Inter-Sport Trophy, which will be presented at the Chairman’s Cocktail Party on 13 May .
Photos from the evening can be viewed here.
- BEGS annual dinner
The Baltic Exchange Golfing Society (BEGS) annual dinner will take place on Thursday 5 March at the Honourable Artillery Company (HAC) in Moorgate.
The dress code is black tie, with both golfers and non-golfers welcome to attend.
Pictures from last year’s dinner can be viewed here.
- Member Update: 19 February
The following individuals have applied for membership of an existing member company:
Company Individual Clarksons Platou
Mr G F Tham Fastfreight Pte Ltd Mr D K Pandey Mr S Sahu Mr O Singh Howe Robinson & Co Ltd
Ms Y X R Foo Miss A Jen Mr G Magnin Mr H K Ng Mr B Zhang
Profision Shipping Capital Management Limited Mrs J Hope RWE Supply & Trading GmbH Ltd
Miss J Gray Mr L Ramos The Air Charter Association Ltd
Mr E Gillett Mr S Iqbal The Arrow Group of Companies Mr J Tan
Any comments should be passed to Karen Karanicholas by 26 February 2020.
- Baltic Academy: FFA training courses this March and April
There are still limited places available on the Baltic’s freight derivatives training courses in London (9-12 March) and New York (27-30 April).
Freight Derivatives & Shipping Risk Management
An overview of risk in the shipping business. Topics covered include freight rate risk management, derivative instruments, freight rate options, bunker and financial risk management, ship price risk management, Value at Risk and credit risk.
Advanced Freight Modelling & Trading
A focus on pricing freight options, modelling freight rate dynamics, constructing forward curves, modelling freight rate volatility as well as hedging and trading strategies.
For full details please visit www.balticexchange.com/other-services/training-2
- Economies face extreme headwinds
Global economies were already not at their healthiest when Covid-19 arrived to shut down cities, curb trade and restrict travel. Now, economic warnings from around the world are being issued making the 2020 outlook rather bleak. Consequently, those reliant on healthy economies to drive world trade now need to batten down the hatches.
Singapore announced a raft of support packages in its budget this week to shore up its economy against the impact of the Covid-19 outbreak. A total of S$800 million has been allocated to fighting the spread of the virus and two economic support packages totalling S$5.6 billion will support businesses and consumers. Singapore has reported one of the highest numbers of Covid-19 infections outside China, with 75 confirmed cases as of Sunday noon, according to its Ministry of Health.
But while the packages were welcomed, they were not good enough to mask a downgrade in the country’s annual GDP: Singapore’s Ministry of Trade and Industry pulled its growth forecast range down to between -0.5% and 1.5%. Previously the forecast for growth was between 0.5% and 2.5%.
The Singapore economy grew by 1% in the fourth quarter of last year and 0.7% for the whole of 2019, the ministry said.
“In China, GDP growth in 2020 is expected to come in lower than earlier projected due to lower household consumption as a result of the lockdowns and travel restrictions implemented in several major Chinese cities to contain the spread of the virus,” said the ministry.
“These developments in China will, in turn, have a knock-on impact on regional economies, including the ASEAN economies, through lower outbound tourism and other import demand from China, as well as disruptions to supply chains.”
Japan, meanwhile, is said to be heading for a recession this year after reporting a drop in output at the end of 2019, which is expected to pull down growth in the current quarter and into the next. Its economy declined by an annual rate of 6.3% during the last quarter of 2019. A technical recession is defined as two consecutive quarters of falling output.
China, the epicentre of the Covid-19 crisis, is also reacting to temper a hit on its economy. The Chinese Central Bank has cut interest rates on its medium-term loans to national banks. It has also moved to inject liquidity into the financial system, buying securities on the financial market worth 100 billion yuan. However, Moody’s Investors Service has still lowered its growth forecast for China from 5.8% to 5.2% for 2020, reflecting “a severe but short-lived economic impact, with knock-on effects for economies across the region”.
Outside of Asia, international trading partners are preparing for the worst. Germany faces the triumvirate of falling Chinese trade, Covid-19 impacts and weakened consumer demand.
Germany’s central bank, the Bundesbank, has issued a warning around a continued fall in orders across the country’s major industrial sectors.
Analysts from Moody’s have forecast that Germany might only hold its 1% growth rate this year.
In South Africa, forecasts for economic growth have been lowered, largely due to domestic challenges rather than external factors such as Covid-19.
Weak industrial activity in in the country is being dragged down by low business and consumer confidence. Recurring power outages have also hit manufacturing and mining output. Moody’s predicts that GDP growth will be just 0.7% in 2020, down from 1%, followed by growth of 0.9% in 2021.
While those forecasts give a hint of immediate international trade prospects, there are long term threats on the horizon that also hang heavy over global economies.
A recent World Wildlife Fund study of 140 countries, Global Futures, has calculated the economic cost of nature’s decline. It found that if the world carries on with “business as usual,” the US would see the largest losses of annual GDP in absolute terms, with $83 billion wiped off its economy each year by 2050 – an amount equivalent to the entire annual GDP of Guatemala. Japan and the UK also stand to lose $80 billion and $21 billion every year respectively.
The projected economic losses in the US, Japan and UK are due largely to expected damage to coastal infrastructure and agricultural land through increased flooding and erosion as a result of losses of natural coastal defences such as coral reefs and mangroves.
Another piece of research, this time from Nature Energy, warns of the detrimental effects of extreme weather on global economies, and goes so far as to warn of a massive economic recession.
The Nature Energy paper found that financial markets that countries are not taking seriously enough the risks that extreme weather events pose to the economy.
“If the market doesn’t do a better job of accounting for climate, we could have a recession — the likes of which we’ve never seen before,” the study’s author, University of California, Davis accounting professor Paul Griffin, said in a statement.
So while economists attempt to make sense of the mire that countries around the world currently find themselves in, there is a need to cast nets further to really appreciate the ominous predicament that the global economy is facing.