BaSVA is a brand new concept for the industry, providing independent assessments on the market value of four ship types -VLCC, aframax, capesize and panamax (dry). All the valuations are made on five year old vessels and based on professional assessments made by a panel of 10 reporting companies. BaSVA will be published twice a month on balticexchange.com.
BaSVA was originally a concept established by a number of Baltic member firms and has been vigorously tested by the Baltic since May. All the data from May is available on balticexchange.com, together with a comprehensive charting package.
The BFA provides the freight derivatives industry with weekly mark-to-market information on three individual routes - P2, P2A, C4 as well as the average of the four panamax time charter routes.
The BFA has been tested since February with five FFA broking companies providing their best bids and best offers. Reports for individual routes are for the current month, one month and two months forward: the average of the four time charter routes covers the next three quarters. The information will be published on balticexchange.com every Thursday.
Commenting on the launch of these new products Baltic Exchange Chief Executive Jim Buckley said: "The launch of BaSVA could kick-start an entirely new derivative product for the shipping industry with a number of broking houses working on the development of a new BaSVA-based contract."
He added: "The decision to publish BFA stems from demand from dry cargo principals who require independent data against which they can mark their forward positions. Many companies are facing increasing pressure from financial authorities to provide documentary evidence of the value of their forward books. We've listened to the industry and responded to their needs."
