Monday, July 6, 2009

Baltic Exchange aims to boost trading

Aims to boost investor interest in index
Shipping News Feature

LONDON - The Baltic Exchange has announced last week that it has changed the way its main sea freight index was calculated, in a shift aimed at increasing freight derivatives trading.

The index, which charts shipping resources transportation prices including iron ore, cement, grain, coal and fertiliser, is compiled from data provided by members of the exchange from international ship broking organisations. The index is a gauge of economic activity, and the recent announced changes will mean the main index will now observe 20 major export routes for commodities.

A spokesman said time charter routes were already being traded on the Freight Forward Agreement (FFA) derivatives market. "These are already liquid routes for F.F.A.’s and by just taking these it just makes it much easier to trade the dry index," he said.