Baltic Director Basil Mavroleon of Bray Shipping has been asked to chair a sub-Committee of the Freight Indices and Futures Committee (FIFC) to drive through the production of the proposed new index.
Speaking today Mr Mavroleon said: "We introduced the Baltic Handy Index back in 1997. It was replaced by the current BHMI in 2000 as vessel sizes increased. The current BHMI is based on assessments of a 45,000 mt ship but the market tells us that the dominant vessel size will rise to something in excess of 50,000 mt over the next 18 months. It is important that the Baltic listens to the users of its data to ensure we produce information which is both relevant and accurate for modern traders. That is why I'm keen to consult as widely as possible before making any changes."
The sub-committee will work with all sections of the Baltic market to conclude the most suitable vessel size and description and to investigate new routes. In particular the BHMI panellists will play an important role in formulating the new index under the guidelines laid down in the Manual for Panellists. It is expected that details of the new index will be announced towards the end of 2003 with a launch date planned for January 2005.
Members of the Exchange have the facility to be fully engaged in the process of helping to define the new index through membership of a consultative group - the Freight Market and Futures Consultative Group. The Group offers the producers and users of Baltic freight market information a clear line of communication with the Exchange and is open to any member of the Baltic.
