BALTIC LAUNCHES DIRTY SECTOR ASSESSMENTS

[proud_ionian]

source: MGN

FOLLOWING what it describes as “a successful three month trial”, the Baltic Exchange has officially launched its daily Time-Charter Equivalent (TCE) assessments for dirty tankers. The service provides average dollar pricing conversions for Very Large Crude Carriers (VLCCs), Suezmax and Aframax tankers derived from a range of routes already reported on by the Baltic Exchange and expressed in Worldscale.

According to Baltic Exchange Chief Executive Jeremy Penn, this new service “will create new trading opportunities by focusing on the daily value in the market of different vessel types.”

Barry Bednar, Chairman of the Baltic’s Tanker Freight Market Information Group, welcomed the move. “Financial markets are not accustomed to using the complex Worldscale system. Having independent benchmark dollar rates provided by the Baltic Exchange is a very welcome step which will help boost liquidity in the tanker FFA market.”

The TCE is calculated using a variable feed of bunker prices supplied by Argus Media. Variable exchange rates supplied under licence by XE.com are also used for adjusting port costs. Port charges used in this calculation are provided under licence by Inchcape Shipping Services.