Changes in the capesize fleet profile have led the Baltic Exchange to announce that it will cease panel based reporting of its 172,000 dwt 4 Timecharter Average (172 4TC) data from 31 July, 2015, and instead provide data derived from its assessments of the more commonly traded 180,000 dwt vessels.
The move follows a decline in the number of 172,000 dwt vessels trading and a growing difficulty for the Exchange’s panel of shipbrokers to provide accurate assessments for this vessel type.
Under the new arrangements the 172 4TC rates will initially be derived from a new calculation of a 180 4TC rate at a constant dollar differential.
The differential will be established and published on 31 July 2015 by reference to the average difference between the panellist reported 172 4TC and the 180 5TC for the preceding 12 months.
”The Baltic Exchange has been providing dual assessments based on 180,000 dwt and 172,000 dwt vessels since February 2014 and we have observed a correlation of over 99% between the two contracts,” Baltic Exchange Chief Executive Jeremy Penn said.
”Faster than anticipated scrapping levels of the older 172,000 dwt vessels will soon mean that our shipbroker panellists will be unable to provide robust assessments for this specific vessel size. The Baltic Exchange cannot make panel based assessments on an increasingly rarely traded vessel type, but publishing a derived rate provides the FFA market with a workable solution and robust settlement data.”
According to analysis by SSY Consultancy and Research there are currently 191 vessels (total 32.87m dwt) of between 170,000-174,999 dwt versus 317 vessels (total 57.34m dwt) of between 180,000-185,000 dwt.
No vessel in the 170,000-174,999 dwt range has been built since 2012 whilst 68 vessels in the 180,000 –185,000 dwt range have been built since 2013. A further 113 180,000–185,000 dwt vessels are scheduled to enter the fleet by the end of 2017.