- The Baltic Exchange – GDPR
The changes made, do not alter what we use your personal information for, but we have made it easier and transparent for you to understand how we use your personal information.
Your personal information is an important part of our service. For instance, it allows the Baltic Exchange Ltd to manage your membership and billing information. It also allows the Baltic Exchange Ltd to stay in touch with you about shipping news, events and maritime related courses that we think might be of interest to you.
If you have any questions in relation to any of the above please contact at email@example.com
- Freight Visibility and Control: Introducing the Freightos Baltic Index (FBX)
When someone asks about the weather, the temperature is an easy response. But answering other questions isn’t always that easy. Even common questions, like the state of the stock market, didn’t always have straight-forward responses.
Today, the go-to metric for that question is typically Standard & Poor’s 500, the Nikkei, or the Dow Jones Industrial Average (a shockingly poor indicator, if you look closer). Having one indicator is critical for visibility and for driving actionable decisions. Instead of looking at each of the top 500 NYSE and Nasdaq Composite companies every fifteen seconds, financial professionals get insights at a glance.
The S&P 500 works because it taps into real, live data, with a representative sample selected by a committee of analysts along with the right methodology. Beyond functioning as a leading indicator, it’s emerged as one of the most common investment instruments.
The underlying premise dates back further, even for freight. In 1744, the Virginia and Baltick [sic] coffee shop in London was the go-to place for traders to discuss maritime pricing. In 1823, this was formalized into a committee to regulate the exchange of securities. By 1985, the Baltic Exchange published its first daily dry bulk freight index.
The Age of the Index
Dataset proliferation, the ability to run complex calculations on the fly, and an increasingly data-driven orientation created a fertile ground for indexes, extending beyond finance, pork bellies, and freight. For example, the Mei Moses Art Indices is an index for fine art, Rapaport has offered a private diamond index since 1978 and the number of real estate indexes has taken off. Nearly every industry has created on-demand metrics to gauge market performance, hedge risks, and make decisions accordingly.
The driver? Reliance on technology is progressing customer empowerment at the speed of light. And with that comes changed expectations.
Customers have unprecedented information at their fingertips. Google describes a typical customer journey of buying a car to have 1,000 digital touchpoints. The freight industry has been evolving, albeit slowly, in this direction and here at Freightos, we’ve been happy to play a role.
However, the industry remains incredibly opaque.
This chart, taken from the free Freightos Rate Insight tool, represents a snapshot, taken this week, of the price ranges across different carriers for a 40’ container that will be shipped along the same route – from Shanghai to Los Angeles. Sure, most of the rates converge in the $900-1,300 range, but that still represents a huge price differential when multiplied across millions of containers. Shippers deserve access to this information, as Jochen Thewes, the CEO of DB Schenker, spelled out at TPM 2018:
“Let’s face it, the freight forwarding industry basically exists because of the complexities in the supply chain, because there are so many players, and because of a lack of transparency, and that is how we have made our money in the past. Now we need to find a way to make money with, and through, transparency.”
A New Freight Index
A definitive international container freight index is one way to provide transparency. But it’s a challenge, as an accurate, actionable freight index, requires three components:
- Data accuracy and timeliness, with full data objectivity
- Breadth of data across geographies
- Ability to transform the data into indicators that are actually helpful.
Freightos’ technology powers international freight sales and management for over one thousand logistics providers, as well as thousands of importers and exporters. This has created a living and breathing database of over one billion data points across modes, carriers and forwarders. This drove Freightos’ launch of the Freightos International Freight Index in 2017.
Today, I’m happy to announce that together with the Baltic Exchange, a Singapore Exchange subsidiary, we’re taking the index to the next level.
We’ve chosen the Baltic Exchange as a strategic partner for our index, updated our core methodology, and are now launching the Freightos Baltic Index (FBX).
The FBX is a headline index that tracks global container prices with one key indicator, backed by a suite of 12 regional indexes, all rebranded under the Freightos Baltic Index. This is truly exceptional; it will be the very first time container shipping will have the instruments and transparency that so far have only been available for financial services.
On the technical side, the new methodology leverages the hundreds of years of experience introduced by the Baltic Exchange. The indexes will be available from the Freightos freight index hub, the Baltic Exchange website, and on Reuters and Bloomberg terminals. These indexes are audited and will be completely compliant with new regulations, like IOSCO and ESMA. Finally, we are pursuing plans to launch financial instruments together with the Baltic Exchange’s owners, the Singapore Exchange, in order to help shippers, carriers, and forwarders control for volatility by transforming the visibility for action.
And we’re still just getting started.
Our vision with the Freightos procurement platform has always been to empower shippers, and enabling service providers to engage with customers in a digitally-powered, transparent manner. Today, we’re happy to provide more visibility than ever to shippers. The next step is to translate that into more control for shippers and logistics providers, leveraging our data and shared expertise to make global freight even better.
- Drinks Reception at Singapore Iron Ore Week 2018
Elevated 40 floors high above the city on the rooftop of CapitaGreen, Artemis offers a spectacular view of Singapore’s urban skyline to the sea beyond.
The event includes light refreshments and is free to attend.
To view the invitation in full, click here.
- FINAL CALL: Greek Wine Tasting in London
A final call for those interested in attending the Greek wine tasting, hosted by the Baltic Exchange in London on 23 May.
“Gone are the days of average Retsina and heavy, oxidised wines” asserts David Hughes, host for the evening, who argues that a “new generation of young, visionary wine growers have breathed life back into old wineries with plantings of noble French varieties as well as resurrecting and perfecting stunning examples of the country’s great indigenous wines.”
The evening will feature six wines and some accompanying Greek meze.
Tickets are priced £10 for members, £15 for non-members.
- Book Now For Baltic Risk Forum At Posidonia
Bookings are now being taken for the Baltic Exchange’s Risk Forum at Posidonia.
Focusing on the issue of risk in the freight and shipping markets, the challenges and opportunities that these can present and what is available to help members manage their exposure, the programme will include:
- An A, B, C (and D & E) of how the Baltic helps members manage risk – Mark Jackson, CEO, Baltic Exchange
- A Perfect Match? Physical Indexation and the FFA Market – Duncan Dunn, Director, SSY Futures
- BDRY ETF: Democratizing Investing in Shipping – John Kartsonas, Managing Partner, Breakwave Advisors
- What are the Commercial Implications of the 2020 Sulphur Cap? – Mark Jackson, CEO,
Baltic Exchange, Brian Nixon, Managing Director, Lavinia Bulk Ltd. and Angelica Kemene, Head of Market Analysis &
Intelligence, Optima Shipbrokers
The event takes place at the Yacht Club of Greece, 4 June (Forum 1100-1330, followed by lunch).
For full details and to register, click here
- Champagne flows at the annual Chairman’s Cocktail Party
On 9 May, the Baltic Exchange hosted its stand-out social event of the year, the Chairman’s Cocktail Party.
Attended by 600 guests, this historic event originally celebrated the end of a Baltic chairman’s two year tenure, held on the floor of the old Baltic Exchange. Now held at Christ Church Spitalfields in London, it brings Baltic members from across the globe together for a unique annual networking and social event, which is also attended by politicians, industry leaders and journalists amongst others.
Baltic Exchange Chairman, Duncan Dunn, gave the customary Chairman’s speech, highlighting the Baltic’s best wishes to Colm Nolan, who is recovering after illness, in addition to thanking outgoing Chairman, Lambros Varnavides and announcing the winners of the Bradley Cup, Howe Robinson.
The Chairman finished by addressing the seismic change the Baltic has undergone in the past year as it moves into a new era, by calling on members to “uphold the traditions of our long and distinguished membership and continue to grow as a beacon shining across the globe for trades increase, integrity and fairness.”
To view the Chairman’s speech in full click here.
Pictures from the event are now live now on the Baltic Exchange’s Flickr page and can be viewed here.
- Anyone for tennis?
On 27 June the Baltic Exchange will be holding the annual Fehr Cup at Surbiton Racket & Fitness Club.
The event is open to 20 pairs of competitors, with all levels of ability welcome to attend. A buffet lunch in the clubhouse overlooking the grass courts will be provided, as well as strawberries and cream and afternoon tea.
Entry, including lunch and refreshments, is £70 per pair.
For more details, please email:
Catharine Bacon – firstname.lastname@example.org
Perry Perera – email@example.com
- BEGS vs Japan match at The Shire London
On 4 May the Baltic Exchange Golf Society (BEGS) hosted the BEGS versus Japan match at The Shire London golf course.
Each team had 12 players, with representatives from Sumitomo, Mitsui London, Iino, Marubeni, Japan Marine United, MK Centennial Maritime, NSS United for the Japanese team and from EDF Man, SSY, Clarksons, MUR Shipping, Lavinia, JP Morgan, Gray Page for the Baltic.
A morning nine holes match play was followed by an afternoon 18 holes, four ball.
Baltic Exchange’s James Pendered delivered an enthusiastic match report, stating:
“The Baltic surged to a 5-1 lead after the morning matches and perhaps enjoyed the lunch too much as the Japanese won the first two afternoon matches to make the score 5-3. However, the Baltic won the third match to take a 6-3 lead, only for the next two matches to be won by the Japanese. The overall result hinged on the final match of Kuroda san (Japan Marine) partnering Jamie Freeland (Nomikos) versus the JP Morgan pair (Nick Meer & Mike Stepp) and the Japanese team came out on top thereby ensuring a gentleman’s draw for the overall result.”
- Member update
The following company has applied for Corporate Membership:
Company Individual Premuda SPA Mr G Maretto Mr L Benzi Mrs B Conti Mrs O Milicevic
The following individuals have applied for Membership of an existing member company:
Company Individual Braemar ACM Shipbroking Ltd Mr C C Robbs Mr P Pachis Hyundai Merchant Marine Co Ltd Mr S Kim Western Bulk Chartering AS Mr V Kumar
Any comments should be passed to Karen Karanicholas by 23 May 2018.
- Baltic Exchange and ICS Lunchtime Lectures
The Baltic Exchange and Institute of Chartered Shipbrokers series of bi-monthly lectures returns to Shanghai, Singapore, Athens and London on 30 May.
Money Walks / Money Talks – A masterclass in the hedging and financial instruments used by shipping principals will be the theme in Singapore, London and Athens with guest speakers as followed:
Singapore: Raghu Raghunath,
Former Head of Noble Chartering Ltd
London: John Banaskiewicz, MD,
Freight Investor Services
Athens: Katerina Stathopoulou,
Executive Director, Investments & Finance
In Shanghai, the focus will be Shipping Supply-Demand Dynamics. The seminar, with guest speaker still to be confirmed, will examine the economic factors that have caused the major changes in shipping rates over the past 12 months and look into what is anticipated to cause the most impact on freight markets throughout the remainder of 2018.
The lectures are free to Baltic and Institute Members, with non-member prices as followed:
£100 London / SG$100 Singapore /
¥500 Shanghai / €100 Athens
Light lunch included
Attendees must register by email to firstname.lastname@example.org using the appropriate reference code below:
BXICS05L (London)/ BXICS05SG (Singapore)/ BXICS05SH (Shanghai)/
To view the flyer, click here.