Baltic Exchange plans to expand with container product

A Baltic Exchange spokesman said the exchange’s plan to expand its involvement in the container industry is “separate from and beyond” the weekly Ningbo Containerized Freight Index it rolled out in 2015.    London’s Baltic Exchange, which has long compiled indexes for dry bulk and tanker markets, said it has plans to expand its involvement in the container industry.
   During a speech in Singapore, Baltic Exchange CEO Mark Jackson said the exchange will develop products for the container and liquefied natural gas markets.
   The Baltic is one of London’s oldest institutions, tracing its origin to an 18th century coffee house where merchants and shipowners met. It was acquired by the Singapore Exchange last year.
   Jackson said the acquisition “has reinvigorated” the Baltic and said its “bold plans… will ensure that the Baltic Exchange remains at the heart of the bulk shipping industry for the long-term.”
   A spokesman for the exchange said the plan was “separate from and beyond” the weekly Ningbo Containerized Freight Index that the Baltic rolled out in 2015.
   “I’m afraid that I can’t give you any more detail at this stage It’s a space that the Baltic intends to enter and there are clearly many ways of achieving this. The Baltic is currently assessing various options and models – further details will be announced in the coming months,” he said.
   It is not clear if the Batlic might partner with a company or institution that currently produces container freight indexes. These include Drewry, whose World Container Index is a composite of container freight rates on eight major routes to and from the United States, Europe and Asia; and the Shanghai Shipping Exchange, which offers several indexes charting container freight rates for Chinese exports, including the Shanghai Containerized Freight Index and China Containerized Freight Index. When asked to comment on the Baltic announcement, Drewry declined.
   Looking ahead, Jackson said the exchange will increase its regulatory role by enhancing the Baltic Code, become more active in supporting its members in post trading activities by creating a digital maritime market infrastructure, change its data distribution policies to enhance the role of its contributing panelists, and tighten non-authorized access to its valuable datasets.
   The exchange also has plans to create a Baltic Asia Advisory Committee to represent the voice of the shipping community in Asia.