Baltic Exchange - Overview

Overview

Its international community of over 550 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic. Baltic Exchange members are responsible for a large proportion of all dry cargo and tanker fixtures as well as the sale and purchase of merchant vessels.

The company was founded in the mid-18th century, with leading founding shareholders being Stephen Ralli and Michael Rodocanachi, whose families were from the Chian Diaspora. The first use of the name was at the Virginia and Baltick Coffee House in Threadneedle Street in 1744, and was registered as a private limited company with shares in 1900. Today the exchange is owned by its member companies and is not publicly traded on a stock exchange. It is operated by a member-elected Board of Directors. It has 20 employees and is located at 38 St Mary Axe in central London.

The exchange provides daily freight market prices and maritime shipping cost indices which are used to settle freight futures (known as Forward Freight Agreements or FFAs). Originally operating a trading floor, the exchange's members' transactions are today done solely over the telephone.

The exchange publishes seven daily indices:

• Baltic Dry Index (BDI)
• Baltic Panamax Index (BPI)
• Baltic Capesize Index (BCI)
• Baltic Supramax Index (BSI)
• Baltic Handysize Index (BHSI)
• Baltic Dirty Tanker Index (BDTI)
• Baltic Clean Tanker Index (BCTI)

The exchange also provides forward curves, dry cargo fixture list, daily news and settlement data.