Page 25 - SG Nautilus Issue 47.indb

ISSUE 47 PAGE 23

MARITIME SERVICES

transactions supported, and the timely handling of Concurring, Mr Federico
the closing and releasing of funds. “For example, Grimaldi, Sale & Purchase
we can either facilitate a physical ship sale and Manager at Vroon B.V.,
purchase closing at our Singapore offi ce, or handle commends the escrow
the release of funds remotely, which we have done team for their fl exible,
on a number of deals recently,” he says. “The escrow professional, and effi cient
service follows a detailed due-diligence process service. “Baltic acted as escrow
without compromising on fl exibility and timeliness agent in a recent sale and
to ensure transactions are handled seamlessly. This purchase transaction, providing
is reinforced by robust controls of fund movements professional, swift, and effi cient Mr Dmitry Pismenny
from the dedicated escrow account held with AA- support at each stage of the process —
rated Singapore banks.” While the service is handled from the initial drafting of the contractual agreements
out of Singapore, it is available to users globally, he to the know-your-customer on-boarding and the actual
adds. “The escrow service is not restricted to Baltic documentary closing. A customer-oriented approach,
members. We have been working with shipowners as professionalism, and high responsiveness of the escrow
well as law fi rms, shipbrokers, and funds who turn to team allowed for a seamless transaction.”
the Baltic Exchange for support.” Mr Pismenny notes that being part of SGX has
Mr V Bala, a Partner handling Shipping & helped open the escrow service to clients beyond
International Trade at the law fi rm of Rajah & shipping, such as companies in the aviation and real
Tann, has recommended the Baltic Exchange’s estate industries. “We have had a positive response in
escrow service to many clients after experiencing it Asia and beyond from a diverse user base, as clients
personally. “We approached Baltic to provide escrow see us as a good alternative to traditional escrow
services in a complex settlement agreement,” he service providers,” he surmises. “The Baltic Exchange’s
recalls. “Speed was key in achieving the settlement, independent and neutral position helps diff erentiate
and it lent a listening ear and provided excellent the service from other escrow providers. There are no

service to the parties and their advisors for them to conflicts of interest, and each transaction is handled
reach the desired outcome.” with the highest level of confidentiality and security.”

SURVIVING COVID-19 USD BDI
The COVID-19 global pandemic has aff ected many
sectors globally, and shipping was not spared. The 2,000
Baltic Dry Index (BDI), the Baltic Exchange’s best
known dry bulk sea freight index, slumped in the early 1,500
months of 2020 as global lockdowns hit demand and
movement of freight. BDI edged higher from June
onwards due to rising demand for shipping cargo 1,000
in the Panamax, Capesize and Supramax segments.
For Panamax, new grain cargoes from Brazil helped 500
support the market, while iron ore inventory
replenishments assisted the Capesize revival. JAN 20 FEB MAR APR MAY JUN JUL AUG

Volatility was observed in the tanker markets, with USD VLCC TCE
daily charter rates for Very Large Crude Carriers
(VLCCs) rising as high as US$250,000 in March before 250,000
plummeting around mid-April. Since then, rates
have continued falling, dropping below US$10,000 200,000

in August. Tankers benefited from a collapse in oil 150,000
prices in March as they were used for sea storage by
traders, who were anticipating higher future prices, 100,000
and refiners, who were running out of land-storage

options. Charter rates subsequently fell due to OPEC 50,000
production cuts, and the unwinding of fl oating storage
as the oil price contango fl attened. JAN 20 FEB MAR APR MAY JUN JUL AUG