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ISSUE 47 PAGE 22

MARITIME SERVICES

more assessments are provided While the Baltic Exchange provides daily freight
directly from the Singapore market indices, Mr Symonds clarifi es that it does not
office than ever before. look to hold an opinion on the future of markets.

“It prices for today and provides a mechanism for
ROLE OF THE ASSESSOR trading forward contracts,” he explains. He adds that
On a daily basis, Mr Andy this is why the Baltic Exchange is trusted to provide a
Symonds, the Senior Freight framework for the global pricing of shipping markets.
Market Assessor at Baltic
Exchange Asia, thumbs through PIPELINE OF PRODUCTS
Mr Andy Symonds analyst reports and logs on to news Ms Lu believes that Asia will continue to be the
sites; he also connects with a large network engine for global economic growth in the foreseeable
of vessel owners, charterers, miners, trading houses, future. The Baltic Exchange will continue to launch
and brokers. This is necessary in order for him to new indices for the global and Asian commodity
gather critical and timely information on the rates of and shipping community in response to market
vessels ferrying various commodities. needs. This will create additional pricing, hedging,
Freight market assessors at the Baltic Exchange and trading mechanisms, providing invaluable
are highly experienced, with an excellent optionality in a time of heightened market volatility
understanding of the dynamics in each vessel class. and uncertainty. “The importance of the region
Mr Symonds, for instance, focuses on market data to shipping can only increase,” she affi rms. “While
relating to Capesize vessels, which are dry cargo COVID-19 will inevitably impact economic growth in
ships typically used in the transportation of coal and the next few years, I remain very optimistic about
iron ore. The data that these assessors collect are Baltic’s prospects in the region over the longer term.

then consolidated and shared with panellists to form China and India offer great opportunities, but so does
shipping indices that are released for use as a guide Southeast Asia.”
to the price of freight for shipping and commodity Ms Lu encourages more shipping and commodity
companies around the world. companies in the region to become members of the
Baltic Exchange. “As a member, you will have a voice
in shaping changes to our existing benchmarks and
new benchmarks. It is very important to have more
BALTIC EXCHANGE: FAST FACTS Asian members to reflect Asia’s importance in the
1 Fast-growing membership base maritime sector and their needs.”
More than 270 years after its inception, the Baltic Exchange remains
a trusted source of independent maritime market data to more than
600 corporate members, who hail from the shipping and commodity STEPPING UP ON INNOVATION
world, including shipowners, shipbrokers, oil majors, commodity In the past two years alone, the Baltic Exchange has
producers and traders, and maritime-related service providers. These
members represent a significant proportion of global trade — a clear launched new LNG and LPG freight and container
indication that the Baltic Exchange remains a stronghold of pricing for and ship operating expense indices for the benefi t
international freight. and convenience of its members. Recently, it
partnered with air cargo pricing publisher, TAC Index
2 The Baltic Code Company, to provide air cargo rate assessments. It
The Baltic Exchange sets standards for ethical business conduct in
shipping. It requires members to adhere to the Baltic Code, which prescribes has also continued innovating to provide members
principles such as participating in negotiations only when in possession of with more value-added services.

written authorisation, confirming verbal agreements in writing, and not

engaging in price fixing. As exemplified by its motto ‘Our Word Our Bond’, To help buyers and sellers transact safely, the

the Baltic Code ensures confidence when dealing with a Baltic Exchange Baltic Exchange launched its escrow service in 2018

member.
to hold and safeguard money as an independent
third party in sale and purchase transactions. It
3 Supporting members through COVID-19 also responded to the need for escrow support in
During this period of market volatility, the Baltic Exchange offi ces
in London and Singapore have continued to hold advisory group and other areas, such as dispute settlements, security
council meetings, launch new products and services, including a new suite
of operating expenses assessments, as well as publish assessments as payments, as well as mergers and acquisitions.
scheduled. The exchange’s benchmark data ensure the settlement of both Mr Dmitry Pismenny, who manages the escrow
physical and derivatives freight contracts, allowing the market to function service, attributes the positive response it has
smoothly even in the midst of COVID-19.
received to the fl exibility of its service, the range of