The assessments will be based on the following criteria:
- Per long tonne light displacement derived from a dirty tanker of between 15,000 and 25,000 light weight, gas free for man entry. Delivery China (15/30 days), as is, under own power, cash price, basis standard commission.
- Per long tonne light displacement derived from a dirty tanker of between 15,000 and 25,000 light weight, gas free for man entry. Delivery Subcontinent (15/30 days), as is, under own power, cash price, basis standard commission.
- Per long tonne light displacement derived from a product tanker of between 6,000 and 10,000 light weight, gas free for man entry. Delivery China (15/30 days), as is, under own power, cash price, basis standard commission.
- Per long tonne light displacement derived from a product tanker of between 6,000 and 10,000 light weight, gas free for man entry. Delivery Subcontinent (15/30 days), as is, under own power, cash price, basis standard commission.
- Per long tonne light displacement derived from a bulk carrier of between 7,000 and 12,000 light weight. Delivery China (15/30 days), as is, under own power, cash price, basis standard commission.
- Per long tonne light displacement derived from a bulk carrier of between 7,000 and 12,000 light weight. Delivery Subcontinent (15/30 days), as is, under own power, cash price, basis standard commission.
The assessments will be published on a weekly basis and based on contributions from ship demolition brokers at ACM Shipping, Clarksons, Compass Maritime, Galbraiths, JV Shipping and Simpson Spence & Young. The assessments will be expressed in US dollars and will be subject to the same auditing procedures as other Baltic assessments.
Baltic Exchange Chief Executive Jeremy Penn said:
“This is a big step for the shipping markets as for the first time it enables the development of derivative products which offer some protection against the fluctuating values of ship scrapping prices. The Baltic’s independent data already underpins the flourishing freight derivatives trade and the ongoing development of sale and purchase derivatives. The shipping markets are increasingly looking to innovative derivative products to manage risk in an inherently volatile arena.”
He added:
“Using Baltic data as the settlement price, it is now possible to trade Forward Freight Agreements during a vessel’s entire working life, trade Sale and Purchase Forward Agreements on its second hand value and soon to trade the demolition value.”
