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Baltic Exchange targets banks with new investor indices

The diversification of business streams at London’s Baltic Exchange, now owned by the Singapore Exchange, shows no sign of letting up with new investor indices launched this week aimed at the banking community.

The Baltic Exchange Investor Indices provide a snapshot five-year view of the financial prospects of dry bulk carriers.

The new online dashboard displays data relevant to vessel investment decisions, residual value, health of earnings, spot and five-year timecharter earnings; purchase and recycling values; and running costs. The indices focus on capesize, panamax, supramax and handysize vessel types. Tanker and gas carrier assets will be added at a later date.

We now cover the financial lifecycle of the vessel

Subscribers to the Baltic Exchange Investor Indices are offered a health of earnings index which compares spot income with daily running costs; an investment index which provides a write-down value of the vessel over five years; and an implied residual risk assessment which gives the recycling steel value of the vessel as a ratio of its implied residual value.

Commenting on the new service, Baltic Exchange chief executive Mark Jackson said: “The Baltic Exchange is a credible, established and regulated provider of data for the shipping industry. The recent addition of operating cost assessments to our portfolio of spot, forward market, sale and purchase and recycling indices means that we now cover the financial lifecycle of the vessel. By splicing and dicing our data we are able to deliver an innovative new product which provides shipowners, banks, family offices and funds with an independent, easy to use benchmark which shows them the current and expected performance of key asset classes.”

Last month the Baltic launched weekly air freight indices as part of its diversification drive.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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