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Guide to Market Benchmarks Version 2.1 - July 2015 Published by Baltic Exchange Information Services

Guide to Market Benchmarks

Version 2.1 - July 2015

Published by Baltic Exchange Information Services Ltd

Preface to Version 2.1, published July 2015

Preface to Version 2.1, published July 2015 This Guide is the successor to the Baltic’s Manual

This Guide is the successor to the Baltic’s Manual for Panellists. The original Manual was published in 1999. It codified the principles underpinning the Baltic’s market benchmarks which were initially produced in 1985.

The Baltic’s market assessments have a wide range of applications. They are used by shipowners and charterers to assess market levels, and market trends, and they may be used to settle physical market transactions. Some are used as settlement mechanisms in the derivatives market. They are used in dispute settlement; by economists; by journalists; and by market analysts and others who wish to monitor trends in the shipping markets.

The new Guide has built on the Baltic’s 30 years of experience in the field of benchmarking. It reflects recent developments in the markets and it ensures compliance with the recently developed Principles for Financial Benchmarks, issued by the International Organisation of Securities Commissions (IOSCO).

The Principles seek to ensure that any market benchmarks used for the purposes of settling financial transactions are produced in accordance with rules which ensure their quality, integrity, continuity and reliability. The Baltic has recognised the importance of all these aims from the inception of its activity in this field.

IOSCO has set out recommended practices in respect of methodology, transparency and governance arrangements. These broadly reflect the Baltic’s long standing practices, but in some respects our governance arrangements have been overhauled to ensure full compliance with the guidelines.

Importantly, the Principles recognise that, whilst they provide a ‘framework of standards’, these can be ‘met in different ways depending on the specificities of each benchmark.’

From inception the Baltic and its panellists have recognised that the world of merchant shipping is extraordinarily complex, varied, and frequently very opaque. This Guide has been developed with due regard to this knowledge and understanding

Shipping contracts are private transactions between two parties. Contract terms are not standardised. The full terms, and the exact time and date of transactions are only known, with certainty, to parties involved. Rates and prices may be agreed subject to other conditions being fulfilled. Individual transactions are often of high value but may be very infrequent. By the standards of financial markets, shipping markets are illiquid. There is no obligatory reporting requirement for transactions and much remains unreported. Yet markets are highly volatile and may move significantly in very short periods of time.

In addition, ships exist in a very large number of different types and sizes. The

In addition, ships exist in a very large number of different types and sizes. The value of variances in design and performance of ships relative to a standardised benchmark varies from trade to trade, and in relation to other key inputs such as bunker prices. The quality of maintenance of ships and the creditworthiness and competence of shipowners may be a factor in the value the market places on a particular ship.

The same class of ship may carry a range of cargoes on a great variety of routes. Different ships, different trades, different cargo sizes, and a myriad of different contract terms can all have a bearing on how individual transactions can be related to standardised market benchmarks .Different market participants may well place differing values on these variants.

This Guide recognises the principle that the rationale for its methodology has to be consistent with the character of the shipping market.

It also recognises the principle that it is important to identify the potential limitations of a benchmark. Many of these have long been recognised in our original Manual and are also reflected in this Guide

The Guide makes it clear that a great deal of appropriate care is taken to ensure the daily route assessments provide a fair valuation of the current market.

However the Baltic has always explained that reporting panels exist because, ultimately, there is no independently verifiable ‘right’ or ‘wrong’ rate for index routes. Therefore market levels at any particular time remain a matter of judgement.

CONTENTS

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APPENDIX 1

APPENDIX 2

APPENDIX 3

APPENDIX 4

APPENDIX 5

APPENDIX 6

APPENDIX 7

APPENDIX 8

APPENDIX 9

APPENDIX 6 APPENDIX 7 APPENDIX 8 A P P E N D I X 9 Introduction

Introduction

Governance Structure

Baltic Benchmarks: Independence of the Administration

Production Method

The role of the SFR

Selection of Benchmark Parameters

Calculation of the Benchmarks

Confidentiality and Transparency

Selection, Appointment, Responsibilities and Audit of Panellists

Duties of Panellists

Guidance for Panellists

Operational Risks

Changes to Benchmarks

Code of Conduct

Audits and Quality Control

Complaints and Whistle-Blowing

Current Index Route Definitions

Details of Index Calculations

Route Notes

Time Charter Equivalents

FFA Forward Curve Specifications

Intraday Forward Curves

Letter to Panellists Confirming Continuation of Appointment Following an Audit by BEISL

Delegation Process

Business Continuity Procedure

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1. Introduction The Baltic Exchange Ltd (BEL) is a limited liability private company with over

1.

Introduction

The Baltic Exchange Ltd (BEL) is a limited liability private company with over 400 shareholders. It operates as a membership organisation within the international shipping marketplace and currently has around 600 member companies worldwide. Its revenues derive principally from membership subscriptions and payments by members to its subsidiary company Baltic Exchange Information Services Ltd (BEISL) for access to its freight market information as well as from property and investments and from its Baltex Multilateral Trading Facility (MTF). BEISL also derives revenues from licences for access to its information from clearing houses operating in the freight derivatives market and from information vendors and application providers active in the financial markets.

1.1.

BEISL publishes a wide range of market reports, fixture lists and market rate indicators on a daily and (in some cases) weekly basis. For this purpose BEISL licences from BEL the rights to make use of its brand name in the production and publication of the data. BEL is not directly involved in the production, management or distribution of the data and it is BEISL which is herein documenting its processes. Staff working in Singapore for the Baltic Exchange (Asia) Pte Ltd are also responsible for the production of certain Asia benchmarks which are specified within this document. Those benchmarks follow the guidance in this document in all respects. For clarity therefore references herein to the Baltic, or the Baltic Exchange are to Baltic Exchange Information Services Ltd (BEISL), its staff and Board, unless otherwise specifically stated. In some instances this will include staff and resource from BEL which are provided under a service agreement. References to the Chairman are to the Chairman of BEISL except where stated otherwise.

1.2.

The Baltic publishes a series of rates which provide an assessment of the prevailing market rate for a specified shipping route in the dry or wet bulk market as well as for forward assessments of the Forward Freight Agreement (FFA) market and associated options market. It also publishes rates for specified ships in the Sale and Purchase and demolition markets. The rates are published on a daily or weekly basis. Each individual rate represents the combined (simple arithmetical average) view of Baltic panellists (Submitters- see 4.2).[A single exception to this is described at 7.4 below]. Most of the individual route rates are used as component parts in the formation of specific indices such as the Baltic Exchange Capesize Index (as is more fully set out below). The Baltic is aware that certain of its benchmark

rates and indices are routinely used by members and non-members in the shipping market and

rates and indices are routinely used by members and non-members in the shipping market and the wider financial community to settle freight derivatives as well as physical market contracts (typically contracts of affreightment and period hire contracts). However, the Baltic cannot have any confidence it is aware of all of the uses to which its data is put.

1.3. This document is concerned with the process for the definition, production and management of BEISL benchmark rates.

1.4. This Guide will be updated as required to reflect necessary changes to practice.

2. Governance Structure 2.1. The overall responsibility for the administration of the benchmarks belongs to

2.

Governance Structure

2.1.

The overall responsibility for the administration of the benchmarks belongs to the Board of BEISL. This board currently comprises a number of Directors who also serve on the Board of BEL. Since BEL is the sole shareholder in BEISL it has the exclusive right to appoint directors to the board of BEISL.

2.2.

The BEISL Board meets at least once a quarter to review matters related to the benchmarks and to make any necessary decisions, conduct reviews of the accuracy and suitability of the benchmarks, and will review annually the independent auditors' reports on compliance with the rules for index production as set out in this Guide.

2.3.

The Board receives advice from staff of BEISL and BEL and invited representatives from the marketplace. BEISL and BEL staff, together with the market representatives, attend in an advisory role. At this time those representatives are the Chairmen of the Freight Market Information Users’ Group (FMIUG) (dry) and the FMIUG (wet) as well as the Chairman of the Forward Freight Agreement Brokers’ Association (FFABA) for each of the dry and wet markets and the Chairmen of the Panellist Working Group. These groups are informally constituted bodies which seek to represent the views and interests of market participants.

2.4.

Board minutes are produced for each meeting which reflect the discussion and the decisions taken. Where necessary a second part of the meeting deals with internal matters not of interest to the market representatives. Minutes are typically recorded by a Baltic group staff member acting as secretary to the meeting and are retained for a minimum of five years.

2.5.

The Senior Freight Market Reporter (SFR) is responsible with his staff for the daily production activity and supervision of the benchmarks. He also provides views and recommendations regarding the reporting of new routes, problems with the reporting of existing routes and reviews the quality and reliability of panellists. Throughout this document SFR is taken to include the staff of the SFR to whom he/she delegates responsibilities when he/she is absent.

2.6.

Certain benchmarks are produced in the Singapore office of the Baltic Exchange which is a separate legal entity known as Baltic Exchange Asia Ltd (BEAL). For the purposes of their benchmark production role the relevant staff of BEAL form part of the SFR team and are subject to the SFRs guidance and instructions.

3. Baltic Benchmarks: Independence of the Administration 3.1 The independence of the production process is

3.

Baltic Benchmarks: Independence of the Administration

3.1

The independence of the production process is more fully set out in section 4 of this document. This section is mainly concerned with the independence of the governance and management process.

3.2

Neither BEL nor any of its operating companies invests in or trades physical or financial shipping assets or rates. It does invest in shipping market infrastructure that directly or indirectly benefits its members. Its income structure is not dependent on the level of the market. Therefore the Directors consider BEL and its operating companies are effectively free from conflicts of interest in relation to benchmark production.

3.3

Although the majority of Directors of BEL and BEISL are market participants, conflicts of interest are minimised by the diversity of interests represented and by the restrictions on shareholder voting rights enshrined in the statutes of BEL.

3.4

Staff working for BEL and any of its subsidiaries are not permitted to invest in or trade freight derivatives. They are also not permitted to invest in private shipping market companies or indirect investment companies such as hedge funds and private equity firms which specifically target the shipping market. Investments managed at arms length by a third party are not restricted by this clause. Should they be in any doubt as to the acceptability of an investment then they are required to raise it with the Chief Executive of BEL Group.

3.5

Investment by staff in the shares of listed shipping companies, either directly or via collective investment vehicles (mutual funds) is acceptable as part of a long term investment process. Day trading or short term investment is not appropriate nor is the use of spread betting or similar products where they relate to the shipping market.

3.6

All staff policies are contained within the BEL Group Staff Handbook, a copy of which is provided to personnel when they start work. Amendments are also distributed to staff as required.

3.7

BEISL Directors are not involved in the day to day index production process, although Directors may sometimes represent panellist companies and could be directly involved in the reporting of rates. The panellist representative is likely to be in a similar position. The FFABA Chairman is likely to be from a panellist company reporting the forward curve and may be directly involved in the reporting of rates. All data received by the Baltic prior to its amalgamation into published results is treated in the strictest confidence.

Access to this data by Directors is not permitted except on a historic basis for

Access to this data by Directors is not permitted except on a historic basis for forensic and audit purposes where in most circumstances it will be made anonymous to protect all parties. This practice will be waived as reasonably required to allow directors fully to investigate complaints or identified problems with the benchmarks.

3.8 Although the Directors of BEISL will normally be shipping market professionals, their range of backgrounds and interests should be sufficiently diverse to protect the independence of the Baltic. This issue is considered and documented by the Board of BEL each year.

3.9 The SFR reports to the Chief Executive of BEL and may in addition raise any matters concerning the indices in confidence with the Chairman of BEISL or the Chairman of BEL if he wishes.

3.10 Staff remuneration policies avoid any link between market levels and remuneration.

4. Production Method 4.1 The Baltic production process is based on the confidential provision of

4.

Production Method

4.1

The Baltic production process is based on the confidential provision of assessments by panellists (known by the IOSCO as Submitters). The assessments represent the professional judgement of the panellist at the time of assessment of the prevailing open market level for the shipping route or (in the case of the forward curve) the instrument concerned. In the case of Sale and Purchase and Demolition assessments, the judgement is of the current value of the defined vessel. (see Appendix 1 for assessment times and reporting windows).

4.2

In reaching their rate assessments, panellists will take cognisance of the totality of market information known to them at the time of reporting, making any appropriate adjustment to accord with the Baltic's route definitions. Where active markets exist, reports are expected to be informed by and thus anchored in fixtures and current negotiations (transactional data). However, the relatively limited liquidity of the shipping markets when compared to some financial markets, together with their underlying volatility, mean that it is essential panellists have discretion over the relative value they attribute to transactional data, and to other data such as tonnage availability, order lists, sentiment and news flow in reaching their assessments.

4.3

It is a characteristic of the global freight market that although a route may be routinely fixed (traded) and therefore meet the criteria for assessment by the Baltic when first adopted, there may subsequently be little or no activity for a period of time. In these circumstances panellists cannot be guided by transactions specific to the route and will therefore use their knowledge of the wider market to provide an appropriate assessment.

4.4

The Baltic retains computer records of inputs and comments for a period of at least five years.

5. The role of the SFR 5.1 The Baltic considers it vital to the accuracy

5.

The role of the SFR

5.1

The Baltic considers it vital to the accuracy and reliability of its benchmarks that it has in place an effective daily monitoring and supervision process managed by the SFR. However, it is also essential that the role of the SFR does not influence the outcome of the benchmark calculation.

5.2

The SFR is a senior shipbroker with a broad experience of the marketplace. He/she will normally have experience as a principal or as a competitive broker, usually in one of the larger shipbroking firms. The experience of the SFR is supplemented by the SFR team as a whole which contains the necessary mix of skills and experience. Taken together the team will have a wide experience of the dry bulk and tanker markets, of principal activity and of competitive shipbroking.

5.3

The Baltic production method requires that each panellist who has agreed to provide an assessment of a specific route does so on every index reporting day, so the primary responsibility of the SFR is to ensure that the report is received from each panellist each day by the designated reporting time. Panellists are exempted from reporting on local public holidays even when it is an official reporting day for the relevant benchmark.

5.4

If for whatever reason a panellist exceptionally fails to report on a given day for one or more routes for which they are on the panel, this must be documented and as a minimum reported to the next Board meeting. Persistent failure by a panellist to report will lead to suspension from the panel. This approach ensures that the SFR can never “cherry-pick” rates to form the averages.

5.5

It is an important part of the Baltic process that the SFR is familiar with the activity in all relevant markets. The daily production of the dry bulk fixture list and market reports are part of this process as are continuous discussions with panel and non-panel brokers as well as with principals. The reporting of fixtures to the Baltic, either for publication or on a private and confidential basis is a considerable assistance to the SFR and helps to support the accuracy of the benchmarks. All Baltic members are encouraged to disclose fixture information to the Baltic.

5.6

If the SFR considers that a rate may contain an obvious error or be significantly out of line with other inputs he contacts the panellist to consult.

5.7

The SFR is in regular contact with all panellists. It is not possible, necessary or desirable to contact every panellist on every route every day. The SFR will normally allocate resources according to the following priorities:

a. Missing rates where the panellist has failed to report; b. Rates falling outside a

a. Missing rates where the panellist has failed to report;

b. Rates falling outside a predetermined tolerance range and therefore highlighted by the Baltic’s computer system. This will vary from route to route but is intended quickly to highlight what appear to be obvious input errors.

c. Routes which are currently relatively illiquid or for some other reason difficult to assess and are therefore worthy of specific attention;

d. Rates where the SFR is concerned the panellist may not be sufficiently attentive to the task;

5.8

The panellist may advise that the rate is an error and offer to correct it. Alternatively, the panellist and the SFR may hold a discussion about the

relevance of certain transactions and other relevant data to the Baltic defined

route.

However, the Baltic will never require a panellist to change a rate or

impose such a change. There are other mechanisms (see especially 9.4 and 9.6) for dealing with panellists who are not considered able to report

professionally on a routine basis.

5.9

All contacts between BEISL and panellists are noted and briefly described in

text field available on the computer system and are retained with all other records (including individual panellist inputs) for five years.

a

5.10

A

panellist may ask the SFR to make the correction to an input. Where the

SFR makes such an intervention this is recorded by the computer system and the SFR is required to note the instruction from the panellist. The panellist is encouraged to do the same.

5.11

The publication of assessments by the Baltic is authorised by the SFR when satisfied that sufficient review of inputs has been carried out. When available this will normally be authorised by the SFR personally. When he is not available there will be a documented hierarchy of authority setting out who is authorised to publish which rates instead of the SFR. This hierarchy will recognise that some production takes place in Singapore and the decision to publish in that case will be routinely delegated. The delegation process

currently in force is included here at

Appendix 7.

6. Selection of Benchmark Parameters While the criteria set out below in 5.1 and 5.2

6.

Selection of Benchmark Parameters

While the criteria set out below in 5.1 and 5.2 are applied at the outset of any new route, markets may change over time such that the route no longer meets the criteria. (See section 13).

6.1

The criteria for selecting routes are broadly as follows:

a. Trade Volume - A steady and significant volume of trade on index routes, or on routes related to them, is important. Trades subject to seasonal closures (such as for example the Great Lakes) are avoided;

b. Transparency - A reasonable volume of accurately reported fixtures should be available. Where possible, trades dominated by a sole or limited number of interests are avoided;

c. Standard Terms - Voyage routes where business is largely concluded on standard terms are favoured;

6.2

Baskets and geographical balance

The Baltic provides calculations of composite rates which aim to reflect movements in the global or regional shipping market for the vessel types concerned. Weightings of routes used to create such a composite are not intended necessarily to reflect accurately actual underlying trade flows nor to be perfectly geographically balanced. The composition of these rates aims to meet the needs of market participants, who are consulted on their design.

6.3

Vessels

In defining timecharter routes, the Baltic specifies the outline details of the vessel to be assessed. The Baltic aims to base its description on a modern vessel design which can act as an appropriate benchmark for its category.

6.4

Forward Assessment and volatility assessments

In order to support the shipping derivatives market and a mark to market or fair value disclosure calculation by market participants, the Baltic provides end of day and intra-day assessments of prices and/or volatilities for the FFA and options market.

In establishing such reporting activity the Baltic applies rules which are generally more flexible than those for the physical market benchmarks.

In starting reporting of a new contract it is guided by the recommendations of the FFABA, the FMIUG and the clearing houses which serve the financial

shipping market. The key criteria in agreeing to report assessments for these contracts will be:

shipping market. The key criteria in agreeing to report assessments for these contracts will be:

- the existence of a documented market expectation that an active forward market for the contract and period concerned will develop

- That the underlying spot physical route or basket is already being reported on by BEISL

- That sufficient panellists confirm they are able and willing to provide a reasonably reliable forward price curve

Liquidity and open interest are kept under review and when no open interest develops or such open interest as exists is closed or settled, the Baltic will aim to cease reporting for the contract.

7. Calculation of the Benchmarks 7.1 The Baltic rate which is published is an unweighted

7.

Calculation of the Benchmarks

7.1

The Baltic rate which is published is an unweighted arithmetical average of each of the panellist contributions received. A single exception to this rule is described in 7.4 below. No rate is excluded.

7.2

The Baltic will not normally provide a rate for a physical market route where it is unable to create a panel of at least five brokers who are considered to meet the criteria for appointment.

7.3

In the case of the Baltic forward assessments, which aim to provide a forward curve to the market for risk management purposes, more flexibility is needed as there are at times as few as two brokers engaged in transactions for specific contracts in the FFA market. In this case the assessment may be produced with as few as two brokers providing rates. However, where this is the case the Baltic will take steps to ensure the less reliable nature of the data is drawn to the attention of the market. This will specifically include statements on the Baltic website analysing the potential shortcomings of the data.

7.4

The forward assessments provided for the dry bulk market are an average of the rates input by each of the brokers. In the case of the wet bulk market the rates represent an average which is weighted according to the market share (based on data provided by the clearing houses) of each broker in the preceding quarter. This is intended to enhance the accuracy of the curve in a market where there are often few brokers involved and widely varying expertise.

7.5

In addition to the end of day forward curve production described above, the Baltic also produces intra-day forward curves which can be made available to assist the main clearing houses in the FFA market in determining margin requirements during the trading day. The data may also be used by others for intra-day risk and profit analysis. The reporting and production process for the intra-day assessments deviates somewhat from that for the end of day assessments. The details of the process are set out in Appendix 6.

7.6

In the event that the Baltic publishes a rate which is subsequently found for whatever reason to be an input or calculation error, the SFR will always advise the Chief Executive. In addition to any other action which may be taken, the Baltic will always publish the corrected data as soon as possible and make a public announcement of the correction in a high profile position on its website.

7.7 However, if, following publication of a route assessment, a panellist submission is confirmed by

7.7 However, if, following publication of a route assessment, a panellist submission is confirmed by a panellist to be erroneous, subject to the views of the SFR and the Chief Executive, this will not normally give rise to a change to the calculated rate, unless the error has been introduced by the computer system or by Baltic staff. A different view may be taken if the error is substantial and observed soon after initial publication has taken place. If warranted the Chief Executive will consult with the Chairman of BEISL on the matter.

7.8 All errors and the actions taken will be reported to the next Board meeting. If necessary a special meeting will be convened.

7.9 The SFR will be vigilant in observing any unusual or suspicious pattern of submissions from panellists and will report any concerns immediately to the Chief Executive who will ensure that the matter is investigated and the Chairman of BEISL is informed.

8. Confidentiality and Transparency 8.1 Confidentiality is vital to the Baltic process and ensures that

8.

Confidentiality and Transparency

8.1

Confidentiality is vital to the Baltic process and ensures that panellists are free to provide their assessments without any threat of interference or influence from the customers on whom they depend for income.

8.2

The Baltic will never disclose panellist inputs or comments except if required by order of a court or a regulator exercising a statutory power. The Baltic also keeps confidential the details of which panellists report on which specific routes. The Baltic makes available general information regarding which firms report.

8.3

Panellists may not disclose to any third party the assessments they have provided to the Baltic except if required by order of a court or a regulator exercising a statutory power. They should disclose to the Baltic any inappropriate contact received from market participants which might represent an attempt to influence rates or probe their inputs.

8.4

The Baltic publishes quantitative data on a monthly basis which are designed to assist users of its benchmarks in understanding the current character of each market and therefore the likely appropriateness of the benchmark as reference for a financial instrument or contract for any given day or period.

8.5

Together these measures provide tangible and substantiated information enabling users both to perform their own analysis and to be confident of the benchmarks without risk of compromising the panel process.

9. Selection, Appointment, Responsibilities and Audit of Panellists 9.1 The integrity of and respect for

9. Selection, Appointment, Responsibilities and Audit of Panellists

9.1 The integrity of and respect for the Baltic indices are the result of the quality and nature of the panel reporting companies and the reporting process itself. Above all is the criterion that panellists must be competitive shipbrokers who do not invest in the markets they report and are therefore free from conflicts of interest. On rare occasions investment firms exist within the same group as panellist companies. Where this is the case the Baltic must satisfy itself that the panellist is managing any resulting conflict of interest appropriately.

9.2 Requirements for the number of panellists on each panel are set out in 7.2 and 7.3.

9.3 The Baltic Exchange appoints panel reporting companies in accordance with the following criteria:

a. The main business of panellists should be shipbroking. Principals cannot be panellists;

b. Panellists must be recognised as competent, professional firms, actively engaged in the markets they report, with adequate personnel to deemed qualified to perform the role of panellist;

c. Panellists must be members of the Baltic Exchange, meeting all relevant membership criteria;

d. Panellists are bound by all of the relevant terms of this document. Each year they are reminded in writing of the key parts;

e. The Baltic aims to maintain a geographical spread of panellists;

f. The Baltic will not appoint as panellists firms who are the exclusive representatives of principals who are particularly influential in relevant trades;

g. The Baltic will not appoint as a panellist a firm which is dependent for its business on a particularly small number of clients;

h. The Baltic will generally not appoint as a panellist a firm which engages in principal trading (as opposed to broking) in the freight derivatives market.

9.4 No firm shall continue to be a panellist unless the firm: - Satisfies and,

9.4 No firm shall continue to be a panellist unless the firm:

- Satisfies and, whenever required to do so, continues to satisfy the Baltic as to the suitability and competence of the firm to report;

- Is a member of the Baltic Exchange;

- Having received notice of the responsibilities of a panellist, as amended from time to time, performs the task of panellist diligently and in accordance with this guide.

9.5 Panellists are appointed for an indefinite period of time. Their appointment is formally reviewed each year, but can also be reviewed at any other time.

9.6 The appointment and removal of panellists is the responsibility of the Board, which will be advised by the SFR. The decision to remove a panellist rests with the Baltic alone and the Baltic is not obliged to provide reasons for the removal or to enter into any correspondence on the matter.

10. Duties of Panellists 10.1 On appointment to a panel the shipbroking firm commits to:

10.

Duties of Panellists

10.1

On appointment to a panel the shipbroking firm commits to:

a. Accept the index rules included in this guide.

b. Continuing to satisfy the Baltic Exchange as to its competence and suitability to report rates.

c. Carry out a process of self-assessment at regular intervals during its appointment having regard to relevant factors, such as the number of shipbrokers in their employment with special knowledge and experience on each route being reported.

d. Appoint a manager and deputy to be the representative and who are responsible to the Baltic Exchange for the performance of their firm’s obligations as panellists. Such brokers shall have the expertise acceptable to the Baltic Exchange and will be replaced if reasonably required by the Baltic Exchange.

e. Accept that all information provided by the panellist to the Baltic Exchange remains confidential between the panellist and the Baltic.

f. Hold an annual "audit" meeting with the SFR for the purpose of reviewing submission quality and accuracy and compliance with this guide.

g. On request confirm to the Baltic index external auditor that the meeting set out at 15.4 has taken place.

10.3

For the purposes of assessing suitability and competence of a firm to be a panellist or to continue to be a panellist the Baltic Exchange requires the firm to apply a process of self-assessment prior to consideration of the firm for appointment, at regular intervals during an appointment and prior to an appointment being renewed, having regard to a number of factors that may be considered relevant, such as:

a. Whether the firm has sufficient personnel who are acceptable to the Baltic Exchange and who have adequate knowledge and shipbroking experience to report on the agreed routes.

b. The location of the firm and its ability to report at the times stated

b. The location of the firm and its ability to report at the times stated in Appendix 1.

c. The ability of the relevant panel reporters to converse using the English language.

The ability of the panellist firm to meet these requirements forms a part of the annual "audit" visit by the SFR, but the Baltic should be notified by the panellist without prompting if at any time it considers it may fail to meet these basic qualifications.

10.4 Responsibility for providing data for the voyage and timecharter routes should be allocated to individual brokers in each panel company who have special knowledge of the specific trade.

10.5 Even if the data is input by a junior member of staff, the route assessments are always decided upon at a level of appropriate competence, and the Baltic is notified of the identity of the responsible staff.

10.6 The representative of the panellist listed with the Baltic Exchange is to have a nominated deputy in his absence. The principal or his deputy or nominee named to the Baltic Exchange should oversee the daily report for errors before it is sent to the Baltic Exchange. A nominee from each panellist should always be available between the reporting time and the publication time as set out in Appendix 1 for consultation with the SFR as required.

10.7 Panellists should retain any available substantiating information for at least five years where such records exist in a suitable form. This would include, where practical, day books, email records, telephone records and/or messaging traffic.

11. Guidance for Panellists 11.1 Panellists retain discretion to decide the respective importance of the

11.

Guidance for Panellists

11.1

Panellists retain discretion to decide the respective importance of the factors they have considered in reaching their assessment. However, the following sections provide guidance to panellists as to the approach normally expected when they consider certain factors. Section 4 of this document provides the essential and overarching guidance to panellists since it sets out the key principles followed by BEISL in the production of the benchmarks.

11.2

Panellists will take note of :

a. Recently concluded fixtures, making their own judgements in respect of the relevance of the information in the case of business fixed with outstanding subjects, and any unusual contract terms;

b. In reporting on timecharter routes panellists are expected to relate all relevant aspects of reported transactions and market activity to the benchmark ship. When considering speed and consumption this will include the likely steaming speed and consumption of the Baltic defined vessel in the prevailing environment for freight rates and bunker costs.

c. Current negotiations, bearing in mind they may frequently be a more immediate reflection of the market than previously concluded business;

d. The supply of ships balanced against cargo demand;

e. Panellists will not normally be influenced or guided by:

i. Any assumption about the motivation behind a particular owner’s

or charterer’s decision to conclude a specific fixture.

ii. Movement in the derivatives markets or period market, unrelated

to

the positions being assessed.

iii. How many days a ship has waited for a fixture.

f. In adjusting fixtures or negotiations which vary from route or vessel definitions, panellists are expected to assess the relevance of any deviation from the route definitions. These include:

i. Specification of ships (timecharter routes). Panellists should exercise their judgement as to the relevance or otherwise of any deviation from the standard specification given in the route definitions. This commonly includes deadweight, draft, cubic

capacity, age, LOA, speed and consumption. ii. Laycan . Where ships are fixed either with

capacity, age, LOA, speed and consumption.

ii. Laycan. Where ships are fixed either with laydays commencing before, and/or cancelling dates later than the time specified in the route definitions, panellists are expected to assess the extent to which this is material.

iii. Delivery and redelivery positions (for timecharter routes). Where delivery and/or redelivery positions fall outside the ranges specified in the route definitions, but are nonetheless considered relevant to the assessment, panellists should exercise their judgement in respect of the appropriate premium or discount which the market would apply on account of the difference. For example, where a route definition states “delivery Antwerp/Hamburg for a round voyage redelivery Skaw/Gib” and a ship is fixed on these terms except with redelivery Passero, panellists are expected to judge the market value of the difference.

iv. Duration (for timecharter routes). Where fixtures are concluded which, in the panellists’ judgement, fall outside the route definition, panellists are expected to assess the significance of any deviation. This is particularly important when ships are fixed from strong areas to weak areas and vice versa, but may also be relevant when business is fixed on a point to point basis, for example trans Atlantic rounds or trans Pacific rounds, at a time when the market structure reflects expectation of market movement such as seasonal strength or weakness.

v. Commission. Route definitions state the commission at which the business is expected to be quoted by usual channels to active market participants. As such, panellists are expected to make allowance for any variation in the rate of commission, for example increased or reduced address commissions at which the business is quoted in the market.

vi. Load/discharge terms (voyage charters). Where these differ from the route descriptions, panellists should assess the value the market places on any variation.

vii. Load/discharge ports (voyage charters). Where fixtures are concluded from load or discharge ports which are outside the route definitions, but deemed relevant to them, panellists must assess the market significance of the difference. This will normally reflect factors such as port costs, relevant drafts, extra/reduced steaming, and the value or otherwise of

geographical position.

geographical position. viii. Cargo size/type (voyage charters). Where cargoes are fixed for quantities which fall

viii.

Cargo size/type (voyage charters). Where cargoes are fixed for quantities which fall outside the specified margins /specifications of the route description, or for types of cargo which usually command a premium or discounted rate, panellists are expected to make an assessment of the market significance of the variation. However, the critical criterion is always that, in the opinion of the panellist, the fixture being considered remains of direct relevance to the route being assessed. In assessing voyage freight panellists should not modify reported rates to take account of the actual quantity of cargo expected to be loaded, provided it comes within the routes specification.

ix.

Material deviation from normal charter terms. If the panellists are aware of any charterparty term that is materially at variance with the market norm, they are entitled to make an appropriate adjustment.

x.

Motives. Panellists are not expected to consider the motives underlying any bona fide, properly reported market activity.

11.3 Age-related factors

a. Definitions for all timecharter routes, and some voyage routes, stipulate a maximum age.

In noting any timecharter market activity that is transacted by ships that are older than the specified maximum, panellists are expected to use their discretion in adjusting these rates to the route definitions.

b. Where voyage routes stipulate a maximum age, panellists are expected to make an allowance for any premium or discount applicable as a result of the age of the vessel.

c. Where the voyage route does not specify the maximum age, the panellist is expected to adjust rates to reflect the rate for modern, tonnage.

11.4 Assessing timecharter fixtures concluded on APS terms

a. Route definitions make certain assumptions about delivery positions which are not always reflected in the terms of fixtures concluded in the market. For example, a route definition may call for a rate based on delivery South Korea/Japan range for a Pacific round voyage with

redelivery South Korea/Japan, whereas in practice ships may be fixed with delivery Arrival Pilot Station

redelivery South Korea/Japan, whereas in practice ships may be fixed with delivery Arrival Pilot Station (APS) Australia (or North Pacific) at a fixed rate of hire with or without a ballast bonus.

b. Panellists take due account of all such market activity, exercising their professional judgement in assessing the relevance of such information to their daily returns.

c. Panellists are entitled (and expected) to take a number of factors into account including but not limited to:

i. The timecharter equivalent (see following section) of a reported fixture. In making this assessment, panellists exercise discretion in determining applicable bunker prices, the duration of paid leg, and appropriate allowances (such as a bad weather allowance) to the ballast leg;

ii. The extent to which a fixture is relevant to the route in question. Factors to be considered include the incidence of such fixtures relative to fixtures on such route definitions; where the ship ballasted from and the probability of actually being able to conclude business at the timecharter equivalent rate. Similar principles apply when ships are fixed on APS terms with no ballast bonuses. Typically the fixtures are concluded at apparently high rates which need adjusting to take account of ballast time and expenses incurred by owners.

In summary, such fixtures can be expected to form a persuasive but not necessarily definitive element in route assessments.

Timecharter Equivalent Calculations

In assessing timecharter equivalent yields, net income less costs is divided by total round voyage duration, where:

net income equals (net daily hire rate x days on hire) plus any ballast bonus if any

cost is the cost of bunkers consumed plus any other relevant expenses on ballast passage

total duration is the ballast time plus days on hire

The resulting net figure is then grossed up by the relevant commission to give the applicable gross round voyage equivalent.

11.5 Extrapolation of implied timecharter rates from voyage fixtures Occasions arise when there is a

11.5 Extrapolation of implied timecharter rates from voyage fixtures

Occasions arise when there is a lack of underlying fixing on timecharter terms in trades covered by timecharter route descriptions, even though comparable trades are being fixed on voyage basis. On other occasions the reverse will be true.

In these circumstances, panellists are encouraged to consider the timecharter equivalent returns of the voyages being fixed, or alternatively the implied voyage rate for a timecharter fixture, and to take this assessment into account in deciding their returns.

Voyage calculations may also be appropriate to assist panellists in adjusting fixtures to the equivalent of the Baltic vessel (in the case of timecharter) and the Baltic load/discharge port, delivery, or redelivery area, and duration as appropriate.

However, it is recognised that, just as voyage estimating varies amongst principals, so too will it vary between panellists and, in addition, it is recognised that such assessments will seldom be the only factors influencing the panellists’ returns.

All physical market panellists are expected to be competent in voyage estimating.

11.6 Forward Curve Reporting

All panellists providing data for the Baltic Forward Assessment are FFA brokers who are members of the FFA Brokers' Association. Panellists are asked to submit the mid price between the best bid and the best offer at the time of the assessment.(see Appendix 1).

If at the time of assessment there is no firm two-way market, the panellist will use his/her market expertise, being guided by market sentiment, other vessel sizes and routes as well as last done transactions.

12. Operational Risks 12.1 The index production and publication process is heavily dependent on a

12.

Operational Risks

12.1

The index production and publication process is heavily dependent on a computer system which integrates the panellist input pages (which are password protected), the processes managed by the SFR (which are also password protected) and the publication mechanism via the public website. Within the public website there are a number of levels of access, also controlled by password.

12.2

The software which provides the index production processes is a proprietary system developed and maintained by Infx Systems of Hastings specifically for the Baltic Exchange Ltd and its affiliates. The systems are housed in specialised facilities provided by InFx. First line support in response to technical problems is provided by Baltic staff, second line by InFx operations staff and third line support is provided by the software development staff at Infx. First and second line support is accessible at all times via a call-out arrangement. Third level support is limited to UK office hours.

12.3

The Baltic Exchange Ltd and its affiliates maintain a disaster recovery plan which is summarised in Appendix 8. This sets out how BEL will react and recover from terrorist incidents, problems which render its premises inaccessible, and major failures of infrastructure.

12.4

There is a certain level of risk to all computer systems from malicious attack. Such attacks can be divided into three types. They may be specific attempts to invade a certain computer system to disrupt or manipulate services, or they may be more general “hacking” attacks where attempts are made to penetrate randomly selected computer systems. The third type are the very common “denial of service” attacks which seek to disable systems by overwhelming them with requests rather than by penetrating them. The Baltic employs third party specialists to test its systems annually to analyse the first two risks. The third type of attack is defended against using sophisticated infrastructure provided by CISCO Systems.

12.5

The Baltic ensures that staff levels among the SFR and technical staff are sufficient to minimise risks brought about by unexpected staff absences. To reduce risks from global epidemics, staff are discouraged from attending the office when they are ill with contagious diseases such as (for example) influenza.

12.6

It would be a cause of major disruption to the benchmark production process if a critical number of panellists withdrew from the provision of rates. If the number of panellists fell below the criterion set out in Section 7, the Baltic

might find itself unable to publish some or all of the benchmarks. Continuous efforts are

might find itself unable to publish some or all of the benchmarks. Continuous efforts are made to reduce the likelihood of this situation arising.

13.

Changes to Benchmarks

13.1

It is a characteristic of the shipping marketplace that trades change and vessel types and sizes develop over time. This means that in order to meet its own criterion of reporting only active trades, the Baltic must establish mechanisms for allowing the evolution, change and cessation of its benchmarks.

13.2

However the Baltic must also act responsibly and take account of the outstanding open interest in the derivatives market as well as the usage made of the route assessments and averages in the conclusion of long term physical deals.

13.3

Minor changes which are unlikely to have an immediate material effect on the rate reported but which are necessary to ensure clarity of reporting arrangements, are approved by the Board and may be implemented at short notice. There will be consultation in advance with the Users' Group, and if considered necessary, meetings of the Users' Group may be arranged. Meetings with the FFABA, or any other stakeholder group deemed relevant by the Board, can be arranged. Panellists will always be included in the consultation process.

13.4

Examples of minor changes include but are not limited to amendments to the size of cargo lifted on a voyage route, usually because of ongoing changes to vessel size and port maxima, as well as changes to laycan definitions reflecting current market practice.

13.5

On occasions minor changes will be introduced in the form of guidance to panellists which refines in some way the reporting requirement.

13.6

An emergency change may be introduced when there has been a significant event in the market which renders the reporting of the current route assessment impossible or meaningless. Examples which might give rise to this situation include the outbreak of war, terrorism, civil unrest, sanctions, and major accidents rendering ports inaccessible. However, these examples should not in any way be taken as a prediction of the response of the Baltic to any specific incident. An alternative to an emergency change will always be simply to suspend the route. The Board has the final decision on whether an emergency change is warranted, having taken such advice as it considers necessary from the ex officio attendees and any others it considers appropriate.

13.7 Scheduled changes are those which are considered necessary to ensure benchmarks remain in line

13.7

Scheduled changes are those which are considered necessary to ensure benchmarks remain in line with the selection criteria set out in Section 5, and which may have some level of impact on the absolute levels reported by panellists, or where the impact is expected to be minor but is not certain. This might include an adjustment to the vessel specification for a timecharter route in response to the introduction of new regulations, or the suspension of

a

route or index. The Baltic will introduce such changes with as much notice

as practical after consultation with the FFABA, FMIUG and panellists as appropriate. However, the decision on the implementation of the change will rest with the Baltic.

13.8

Major changes are acknowledged to have the potential to create serious market disruption. These would include completely new vessel descriptions or changes to routes where there is significant FFA and options open interest.

13.9

It

is the experience of the Baltic that major changes demand lengthy

consultation processes and detailed consideration of the impact on the open interest in the derivatives market. Implementation plans are set out clearly in advance so as to minimise market disruption. However, the Baltic will not normally continue parallel reporting of a superseded vessel or route for a period greater than two years. It will also restrict publication of new periods for the forward curve beyond the two year threshold. This means that those making use of the Baltic benchmarks in both physical and derivatives markets must have mechanisms in place to ensure there is a smooth transition from one benchmark to its replacement. Charter Parties covering index-linked period business should provide for such transitions. Clearing Houses making use of Baltic data for margining and settlement purposes must also put in place suitable mechanisms to permit the management of open interest at times of change to benchmarks.

14. Code of Conduct 14.1 The duties of panellists and the Baltic are clearly set

14.

Code of Conduct

14.1

The duties of panellists and the Baltic are clearly set out in this document, which constitutes a code of conduct for the production of Baltic benchmarks. In addition all members of the Baltic Exchange are required to comply with The Baltic Code which makes specific reference to Baltic panellists in the section entitled The Baltic Code of Ethics and Market Practice as follows:

Brokers who act as Baltic panellists are required to pay careful attention to the guidance offered by the Guide to Market Benchmarks. Impeccable standards of honesty and integrity are critical to this role.

15. Audits and Quality Control 15.1 The daily interaction between the SFR and the panellists

15.

Audits and Quality Control

15.1

The daily interaction between the SFR and the panellists is an important part of the audit and quality control process.

15.2

In addition a major accounting firm conducts a review on a quarterly basis of the calculation of the benchmarks by the Baltic computer system. It inputs the raw data into a separate system and uses that to make the same calculation. Such a review is also carried out whenever there is a change to the index weightings or adjustment factors. This also serves to confirm that if the Baltic’s systems were unavailable the accounting firm's computers could be used to produce the results on an emergency basis. BEISL directors can also request an ad hoc review when they feel such would be appropriate.

15.3

The accounting firm is required once a year to review this document to ensure that is complies with the requirements of the IOSCO Principles for Financial Benchmarks and to confirm that the Baltic is complying with the processes and procedures set out in this document.

15.4

Finally each panellist is visited by the SFR each year and the following review is conducted and documented.

a. Market position. The Baltic will from time to time establish quantitative criteria as a qualification for serving as a panellist. The criteria will normally relate to the number of fixtures of the vessel type or route the panellist has concluded in a preceding period. Alternatively the Baltic may ask a panellist simply to provide information covering relevant routes, such as how many fixtures have been concluded or negotiations engaged in. In some cases it will suffice for the panellist to confirm that their level of market activity exceeds a specific threshold set by the SFR. The Baltic will treat all such information on a strictly confidential basis. Any information provided to the Board will be in a form which avoids any threat to the confidentiality of this data.

b. Staff levels. Are there sufficient senior staff to ensure that the routes agreed upon can be reported every index day?

c. Has a senior staff member who is a Principal or Representative member of the Baltic been nominated for each category of routes (eg cape, panamax etc) as the responsible panellist?

d. Confirm that no changes to the nature of the business have given rise to new conflicts of interest and that the panellist company still meets all

the criteria for appointment.

the criteria for appointment. e. Confirm that the panellist has provided inputs on the agreed routes

e. Confirm that the panellist has provided inputs on the agreed routes on each index day and to note and explain any exception.

15.5 The accounting firm reviews the Baltic records each year to confirm that this review process has been conducted with each panellist and the panellist has been provided with a review letter, an example of which is shown at Appendix 5.

16. Complaints and Whistle-Blowing 16.1 Since the shipping market is an opaque market there are

16.

Complaints and Whistle-Blowing

16.1

Since the shipping market is an opaque market there are on any given day a range of views of the value of each route assessed by the Baltic, which is why the panel process is used. It is inevitable therefore that the process will give rise to informal comment and, on occasions, more formal complaints.

a. Informal comment

Informal comments will normally be received via email or telephone by the SFR or the BEL Chief Executive. They will agree together how to respond and whether any escalation of the comment is required. If they feel the comment should be escalated then the chairman of BEISL should be consulted and if deemed necessary, the comment and the response can be reviewed at the next Board meeting.

If the informal comment is not resolved to the satisfaction of the originator then they will be provided with information setting out how to initiate a formal complaint if they wish. This procedure is set out below.

b. Formal complaint

This should be addressed by email to complaint@balticexchange.com. The email will automatically be copied on to both the BEL Chief Executive and the Chairman. The Board will consider whether the complaint has merit and what action if any should be taken. The Chairman will send a response to the complainant outlining the position of the Company and any action agreed upon. The complaint will be treated in confidence, but must contain the full name and company details of the originator as well as all available evidence to support the complaint.

Any formal complaints received will be reported on to the Board at its next meeting.

c. "Whistle-Blowing"

The Baltic Exchange Ltd and its affiliates have been producing market benchmarks since 1985 and although there has never been any suggestion of serious irregularity, it is appropriate to ensure that anyone with knowledge of such irregularity has the opportunity to report it on a confidential basis at the highest possible level. The primary recipient for any such “whistle-blowing” should be the BEL Chief Executive. If the whistle-blower does not wish to make use of this route then the Chairman of BEISL is an alternative. Failing him then the Chairman of the Baltic Exchange Ltd is also able to receive such

information. For reasons of confidentiality and to ensure the approach is not missed, the preferred

information. For reasons of confidentiality and to ensure the approach

is not missed, the preferred way of approaching the matter is by

telephone.

All three of these individuals are aware of the need to deal promptly and vigorously with such matters and to protect the interest and identity

of the complainant in all circumstances. They will record in writing

details of both the initial contact from the whistle-blower and any subsequent contact. Any details of the whistle-blower and the nature of the concern will be kept strictly confidential.

A whistle-blower may make a complaint on an anonymous basis.

However, it will always be easier to investigate the matter if the details

of the initiator are known.

APPENDIX 1

Assessment times and reporting windows

APPENDIX 1 Assessment times and reporting windows Data Group Assessment Time Reporting Window Capesize 1030

Data Group

Assessment Time

Reporting Window

Capesize

1030

1030-1045

Panamax

1230

1230-1245

Supramax

1230

1230-1245

Handysize

1230

1230-1245

Tanker routes

1530

1530-1545

BFA

1630

1630-1645

BES/BEP Asia

1230

1230-1245 (Singapore time)

BITRA Asia

1530

1530-1545 (Singapore time)

Sale and Purchase and Demolition assessments are assessed for the previous Friday and reported to the Baltic by 1530 each Monday.

Current Index Route Definitions

The following definitions cover the timecharter and voyage routes and vessel descriptions currently reported by the Baltic. It also sets out the basis for certain calculated results provided by the Baltic, including indices, timecharter averages and timecharter equivalents (TCE).

The Baltic Dry Index

The Baltic Dry Index (BDI) is the successor to the Baltic Freight Index (BFI) and came into operation on 1 November 1999. Since 1 July 2009, the index is a composite of the Capesize, Panamax, Supramax and Handysize Timecharter Averages.

The calculation until 30 June 2009 was based on an equally weighted average of the BCI, BPI, BHSI and the BSI index. The BDI continues the established time series of the BFI, introduced in 1985. However, users of the index should note that the voyages and vessels covered by the index have changed a great deal so caution should be exercised in assuming long term consistency of the data.

For the creation of BDI we now use the following formula:

((Capesize 2014 TCavg + PanamaxTCavg + SupramaxTCavg + HandysizeTCavg)/ 4) * 0.110345333)

Where TCavg = Time charter average.

The multiplier was first applied when the BDI replaced BFI, and has changed over the years as the contributing indices and the methods of calculation have been modified. The multiplier was last updated on 6 May 2014.

Baltic Exchange Capesize 2014 Index (BCI) The Baltic capesize 2014 vessel is based on the

Baltic Exchange Capesize 2014 Index (BCI)

The Baltic capesize 2014 vessel is based on the following description:

180,000mt dwt on 18.2m SSW draft

Max age 10 yrs

LOA 290m, beam 45m, TPC 121

198,000cbm grain

14 knots laden/15 knots ballast on 62mt fuel oil (380cst), no diesel at sea

When considering the prevailing timecharter market rate for the Baltic capesize vessel, panellists should assume that, if steaming at 12 knots laden or 13 knots ballast, the vessel will consume 43mt fuel oil (380cst), no diesel at sea.

Routes

C2

Tubarao to Rotterdam. 160,000lt iron ore, 10% more or less in owner’s option, free in and out. Laydays/cancelling 20/35 days from index date. 6 days, Sundays + holidays included all purposes. 6 hrs turn time at loading port, 6 hrs turn time at discharge port, 0.5% in lieu of weighing. Freight based on long tons. Age max 18 yrs. 3.75% total commission.

C3

Tubarao to Qingdao. 160,000mt or 170,000mt iron ore, 10% more or less in owner’s option, free in and out. Laydays/cancelling 20/35 days from index date. Scale load/30,000mt Sundays + holidays included discharge. 6 hrs turn time at loading port, 24 hrs turn time at discharge port. Age max 18 yrs. 3.75% total commission.

C4

Richards Bay to Rotterdam. 150,000mt coal, 10% more or less in owner’s option, free in and out, trimmed. Laydays/cancelling 25/40 days from index date. Scale load/25,000mt Sundays + holidays included discharge. 18 hrs turn time at loading port, 12 hrs turn time at discharge port. Age max 15 yrs. 3.75% total commission.

C5

West Australia to Qingdao. 160,000mt or 170,000mt iron ore, 10% more or less in owner’s option, free in and out. Laydays/cancelling 10/20 days from index date. Scale load/30,000mt Sundays + holidays included discharge. 6 hrs turn time at loading port, 24 hrs turn time at discharge port. Age max 18 yrs. 3.75% total commission.

C7 Bolivar to Rotterdam. 150,000mt coal, 10% more or less in owner’s option, free i

C7

Bolivar to Rotterdam. 150,000mt coal, 10% more or less in owner’s option, free in and out, trimmed. Laydays/cancelling 20/35 days from index date. 50,000mt Sundays + holidays included load, 25,000mt Sundays + holidays included discharge. 12 hrs turn time at loading port, 12 hrs turn time at discharge port. Age max 15 yrs. 3.75% total commission.

C8_14

Delivery Gibraltar-Hamburg range, laydays/cancelling 3/10 days from index date, transatlantic round voyage, redelivery Gibraltar-Hamburg range, duration 30-45 days. Basis the Baltic capesize 2014 vessel. 5% total commission.

C9_14

Delivery Amsterdam-Rotterdam-Antwerp range or passing Passero, laydays/cancelling 3/10 days from index date, redelivery China-Japan range, duration about 65 days. Basis the Baltic capesize 2014 vessel. 5% total commission.

C10_14

Delivery China-Japan range, laydays/cancelling 3/10 days from index date, redelivery China-Japan range, duration 30-40 days. Basis the Baltic capesize 2014 vessel. 5% total commission.

C14

Delivery Qingdao spot or retroactive up to a maximum 15 days after sailing from Qingdao, round voyage via Brazil, redelivery China-Japan range, duration 80-90 days. Basis the Baltic capesize 2014 vessel. 5% total commission.

C15

Richards Bay to Fangcheng. 160,000mt coal, 10% more or less in owner’s option, free in and out, trimmed, scale load / 30,000mt Sundays + holidays included discharge. 18 hrs turn time at loading port, 24 hrs turn time at discharge port. Laydays/cancelling 25/35 days from index date. Age max 15 yrs. 5% total commission.

C16

Delivery North China-South Japan range, 3-10 days from index date for a trip via Australia or Indonesia or US west coast or South Africa or Brazil, redelivery UK-Cont-Med within Skaw-Passero range, duration to be adjusted to 65 days. Basis the Baltic capesize 2014 vessel. 5% total commission.

C17

Saldanha Bay to Qingdao. 170,000mt iron ore 10% more or less in owner’s option, free in and out trimmed. Laydays/cancelling 20/30 days from index date. 90,000 Sundays + holidays included load / 30,000 Sundays + holidays included discharge. 18 hrs turntime at loading port, 24 hrs turntime at discharge port. Max age 18 yrs. 5 % total commission. (This route does not contribute to the BCI.)

39
39
Applicable weightings for the calculation of the timecharter average value: C8_14 25% C9_14 12.5% C10_14

Applicable weightings for the calculation of the timecharter average value:

C8_14

25%

C9_14

12.5%

C10_14

25%

C14_14

25%

C16_14

12.5%

The data below shows the calculation of the superseded 4 Timecharter Average for the 172,000 DWT Capesize ship which was the Baltic Standard until 2 May 2014.

Route definitions:

C8_03

Delivery Gibraltar-Hamburg range, laydays/cancelling 3/10 days from index date, transatlantic round voyage, redelivery Gibraltar-Hamburg range, duration 30-45 days. Basis the Baltic 172,000dwt vessel. 3.75% total commission.

C9_03

Delivery Amsterdam-Rotterdam-Antwerp range or passing Passero, laydays/cancelling 3/10 days from index date, redelivery China-Japan range, duration about 65 days. Basis the Baltic 172,000dwt vessel. 3.75% total commission.

C10_03

Delivery China-Japan range, laydays/cancelling 3/10 days from index date, redelivery China- Japan range, duration 30-40 days. Basis the Baltic 172,000dwt vessel. 3.75% total commission.

C11_03

Delivery China-Japan range, 3-10 days from index date for a trip with redelivery Amsterdam- Rotterdam-Antwerp range or passing Passero, duration about 65 days. Basis the Baltic 172,000 dwt vessel. 3.75% total commission.

BCI 172,000 dwt timecharter average value calculation

C8_03

25%

C9_03

25%

C10_03

25%

C11_03

25%

Baltic Exchange Panamax Index (BPI)

The Baltic panamax vessel is based on the following description: • 74,000mt dwt on 13.95m

The Baltic panamax vessel is based on the following description:

74,000mt dwt on 13.95m SSW draft

Max age 12 yrs

LOA 225m, beam 32.2m

89,000cbm grain

14 knots on 32mt fuel oil (380cst) laden/28mt fuel oil (380cst) ballast, no diesel at sea.

Routes

P1A_03

Delivery Skaw-Gibraltar range, loading 15-20 days from index date, transatlantic round voyage, including east coast South America, redelivery Skaw-Gibraltar range, duration 45-60 days. Basis the Baltic panamax vessel. Cargo basis grain, ore, coal or similar bulk harmless cargo. 3.75% total commission.

P2A _03

Delivery Skaw-Gibraltar range, loading 15-20 days from index date, for a trip via east coast South America, US Gulf or US east coast to Asia, redelivery Taiwan- Japan range, duration 60-65 days. Basis the Baltic panamax vessel. Cargo basis grain, ore, coal or similar bulk harmless cargo. 3.75% total commission.

P3A _03

Delivery Japan-South Korea range, loading 15-20 days from index date, transpacific round voyage, either via Australia or Pacific (not including short rounds such as Vostochny to Japan), redelivery Japan-South Korea range, duration 35-50 days. Basis the Baltic panamax vessel. Cargo basis grain, ore, coal or similar bulk harmless cargo. 3.75% total commission.

P4 _03

Delivery Japan-South Korea range, loading 15-20 days from index date, for a trip via US west coast- British Columbia range or Australia, redelivery Skaw-Passero range, duration 50-60 days. Basis the Baltic panamax vessel. Cargo basis grain, petroleum coke, coal or similar bulk harmless cargo. 3.75% total commission

Applicable weightings for the calculation of the timecharter average values:

P1A_03

25%

P2A_03

25%

P3A_03

25%

P4A_03

25%

Baltic Exchange Panamax (BEP) Asia

The Baltic panamax vessel is based on the following description: • 74,000mt dwt on 13.95m

The Baltic panamax vessel is based on the following description:

74,000mt dwt on 13.95m SSW draft

Max age 12 yrs

LOA 225m, beam 32.2m

89,000cbm grain

14 knots on 32mt fuel oil (380cst) laden/28mt fuel oil (380cst) ballast, no diesel at sea.

Routes

P5

Delivery South China (Fuzhou-Hong Kong range) or passing Taipei southbound, laydays/cancelling 5/10 days from index date, for a trip via Indonesia, redelivery South China (Fuzhou-Hong Kong range), duration 20-25 days. Basis the Baltic panamax vessel. Cargo basis coal. 5% total commission.

Baltic Exchange Supramax Index (BSI) The Baltic supramax vessel is based on a standard "Tess

Baltic Exchange Supramax Index (BSI)

The Baltic supramax vessel is based on a standard "Tess 52" type vessel of the following description:

52,454mt dwt on 12.02m SSW draft

Max age 15 yrs

LOA 189.99m, beam 32.26m

67,756cbm grain, 65,600cbm bale

5 holds, 5 hatches

4 x 30mt cranes with 12cbm grabs

14 knots laden/14.5 knots ballast on 30mt fuel oil (380cst), no diesel at

sea

Routes

S1A

Delivery Antwerp-Skaw range, laydays/cancelling 5/10 days from index date, redelivery Singapore-Japan range (including China), duration 60-65 days. Basis the Baltic supramax vessel. 5% total commission.

S1B

Delivery passing Canakkale, laydays/cancelling 5/10 days from index date, redelivery Singapore-Japan range (including China), duration 50-55 days. Basis the Baltic supramax vessel. 5% total commission.

S2

Delivery South Korea-Japan range, laydays/cancelling 5/10 days from index date, for an Australian or transpacific round voyage, redelivery South Korea-Japan range, duration 35-40 days. Basis the Baltic supramax vessel. 5% total commission.

S3

Delivery South Korea-Japan range, laydays/cancelling 5/10 days from index date, redelivery Gibraltar-Skaw range, duration 60-65 days. Basis the Baltic supramax vessel. 5% total commission.

S4A

Delivery US Gulf, laydays/cancelling 5/10 days from index date, redelivery Skaw-Passero range, duration about 30 days. Basis the

Baltic supramax vessel. 5% total commission. S4B Delivery Skaw-Passero range, laydays/cancelling 5/10 days from index

Baltic supramax vessel. 5% total commission.

S4B

Delivery Skaw-Passero range, laydays/cancelling 5/10 days from index date, redelivery US Gulf, duration about 30 days. Basis the Baltic supramax vessel. 5% total commission.

Applicable weightings for the calculation of the timecharter average values:

S1A

12.5%

S1B

12.5%

S2

25%

S3

25%

S4A

12.5%

S4B

12.5%

S5

Delivery west Africa (Dakar-Douala range), laydays/cancelling 5/10 days from index date, trip via east coast South America, redelivery north China (Shanghai-Dalian range), duration 60-65 days. Basis the Baltic supramax vessel. 5% total commission. This route does not contribute to the BSI or TC average.

S9

Delivery west Africa (Dakar-Douala range), laydays/cancelling 5/10 days from index date, trip via east coast South America, redelivery Skaw-Passero range, duration 45-50 days. Basis the Baltic supramax vessel. 5% total commission. This route does not contribute to the BSI or TC average.

Baltic Exchange Supramax (BES) Asia Index The Baltic supramax vessel is based on a standard

Baltic Exchange Supramax (BES) Asia Index

The Baltic supramax vessel is based on a standard "Tess 52" type vessel of the following description:

52,454mt dwt on 12.02m SSW draft

Max age 15 yrs

LOA 189.99m, beam 32.26m

67,756cbm grain, 65,600cbm bale

5 holds, 5 hatches

4 x 30mt cranes with 12cbm grabs

14 knots laden/14.5 knots ballast on 30mt fuel oil (380cst), no diesel at sea

Routes

S8

Delivery South China (Fuzhou-Fangcheng range including Taiwan), laydays/cancelling 5/10 days from index date, trip via Indonesia, redelivery east coast India (Chennai-Paradip range), duration 20-25 days. Basis the Baltic supramax vessel. Cargo basis coal. 5% total commission.

S10

Delivery South China (Fuzhou-Fangcheng range including Taiwan), laydays/cancelling 5/10 days from index date, trip via Indonesia, redelivery South China (Fangcheng-Fuzhou range), duration 20-25 days. Basis the Baltic supramax vessel. Cargo basis coal. 5% total commission.

S11

Delivery China (Changjiangkou (CJK)-Ningde range), laydays/cancelling 5/10 days from index date, for an Australian or transpacific round voyage, redelivery full China, duration 35-50 days. Basis the Baltic supramax vessel. Cargo basis coal, grain or similar bulk harmless cargo. 5% total commission.

Applicable weightings for the calculation of the timecharter average values:

S8

33.33%

S10

33.33%

S11

33.33%

S11 33.33% 46
Baltic Exchange Handysize Index (BHSI) The Baltic Exchange handysize vessel is based on the following

Baltic Exchange Handysize Index (BHSI)

The Baltic Exchange handysize vessel is based on the following vessel description:

28,000mt dwt on 9.78m SSW draft

Max age 15 yrs

LOA 169m, beam 27m

37,523cbm grain, 35,762cbm bale

5 holds, 5 hatches

4 x 30mt cranes

14 knots average laden/ballast on 22mt fuel oil (380cst), no diesel at sea

Routes

HS1

Delivery Skaw-Passero range, laydays/cancelling 5/10 days from index date, redelivery Recalada-Rio de Janeiro range, duration 35-45 days. Basis the Baltic handysize vessel. 5% total commission.

HS2

Delivery Skaw-Passero range, laydays/cancelling 5/10 days from index date, redelivery Boston-Galveston range. Duration 35-45 days. Basis the Baltic handysize vessel. 5% total commission.

HS3

Delivery Recalada-Rio de Janeiro range, laydays/cancelling 5/10 days from index date, redelivery Skaw-Passero range, duration 35-45 days. Basis the Baltic handysize vessel. 5% total commission.

HS4

Delivery US Gulf, laydays/cancelling 5/10 days from index date, for a trip via US Gulf or north coast South America, redelivery Skaw-Passero range, duration 35-45 days. Basis the Baltic handysize vessel. 5% total commission.

HS5

Delivery South East Asia, laydays/cancelling 5/10 days from index date, trip via Australia, redelivery SingaporeJapan range including China, duration 25-30 days. Basis the Baltic handysize vessel. 5% total commission.

HS6 Delivery South Korea-Japan range, laydays/cancelling 5/10 days from index date, trip via North Pacific,

HS6

Delivery South Korea-Japan range, laydays/cancelling 5/10 days from index date, trip via North Pacific, redelivery Singapore-Japan range including China, duration 40-45 days. Basis the Baltic handysize vessel. 5% total commission.

Applicable weightings for the calculation of the timecharter average values:

HS1

12.5%

HS2

12.5%

HS3

12.5%

HS4

12.5%

HS5

25%

HS6

25%

Baltic Exchange Dirty Tanker Index (BDTI) TD1 280,000mt. Middle East Gulf to US Gulf (Ras

Baltic Exchange Dirty Tanker Index (BDTI)

TD1

280,000mt. Middle East Gulf to US Gulf (Ras Tanura to Louisiana Offshore Oil Port (LOOP)). Laydays/cancelling 20/30 days from index date. Age max 20 yrs. 2.5% total commission.

TD2

270,000mt. Middle East Gulf to Singapore (Ras Tanura to Singapore). Laydays/cancelling 20/30 days from index date. Age max 20 yrs. 2.5% total commission.

TD3

265,000mt. Middle East Gulf to Japan (Ras Tanura to Chiba). Laydays/cancelling 15/30 days from index date. Age max 15 yrs. 2.5% total commission.

TD4

260,000mt. West Africa to US Gulf. Bonny Offshore Terminal to (Louisiana Offshore Oil Port (LOOP)). Laydays/cancelling 15/25 days from index date. Age max 20 yrs. 2.5% total commission.

TD6

135,000mt. Black Sea to Mediterranean (Novorossiyk to Augusta). Laydays/cancelling 10/15 days from index date. Age max 20 yrs. 2.5% total commission.

TD7

80,000mt. North Sea to Continent (Sullom Voe to Wilhelmshaven). Laydays/cancelling 7/14 days from index date. Age max 20 yrs. 2.5% total commission.

TD8

80,000mt crude and/or DPP, heat 135F. Kuwait to Singapore (Mena al Ahmadi to Singapore). Laydays/cancelling 20/25 days from index date. Double hull, age max 20 yrs. 2.5% total commission.

TD9

70,000mt. Caribbean to US Gulf (Puerto La Cruz to Corpus Christi). Laydays/cancelling 7/14 days from index date. Age max 20 yrs. Assessment basis Oil Pollution Act premium paid. 2.5% total commission.

TD12 55,000mt fuel oil. Amsterdam-Rotterdam-Antwerp range to US Gulf (Antwerp to Houston). Laydays/cancelling 15/20 days

TD12

55,000mt fuel oil. Amsterdam-Rotterdam-Antwerp range to US Gulf (Antwerp to Houston). Laydays/cancelling 15/20 days from index date. Double hull, age max 15 yrs. 2.5% total commission.

TD14

80,000mt. South East Asia to east coast Australia (Seria to Sydney). Laydays/cancelling 21/25 days from index date. Double hull, age max 15 yrs. 2.5% total commission.

TD15

260,000mt. West Africa to China (Serpentina FPSO and Bonny Offshore Terminal to Ningpo). Laydays/cancelling 20/30 days from index date. Double hull, age max 20 yrs. 2.5% total commission.

date. Double hull, age max 20 yrs. 2.5% total commission. TD17 100,000mt. Baltic to UK-Cont (Primorsk

TD17

100,000mt. Baltic to UK-Cont (Primorsk to Wilhelmshaven), Great Belt laden/ballast. Laydays/cancelling 10/20 days from index date. Double hull, age max 15 yrs. 2.5% total commission.

TD18

30,000mt fuel oil. Baltic to UK-Cont (Tallinn to Rotterdam). Laydays/cancelling 10/15 days from index date. Double hull, age max 15 yrs. 2.5% total commission.

TD19

80,000mt. Cross Mediterranean (Ceyhan to Lavera). Laydays/cancelling 10/15 days from index date. Age max 20 yrs. 2.5% total commission.

TD20

130,000mt. West Africa to UK-Continent (offshore terminal Bony) to Rotterdam. Laydays/cancelling 15-20 days from the index date. Age max 20 years. 82,000grt. 2.5% total commission.

TD21

50,000mt fuel oil, Caribbean to US Gulf (Mamonal to Houston), laydays/cancelling 7/14 days from index date. Double hull, age max 20 yrs. 2.5% total commission.

Time Charter Equivalents

Time Charter Equivalents Time Charter Equivalent (TCE) assessments for dirty tankers are made up of average

Time Charter Equivalent (TCE) assessments for dirty tankers are made up of average dollar pricing conversions for Very Large Crude Carriers (VLCCs), Suezmax and Aframax tankers derived from a range of routes already reported on by the Baltic Exchange and expressed in Worldscale. In addition, TCE assessments for individual routes are also reported.

VLCC

The published VLCC time charter equivalent is an average of the rates derived from TD1 and TD3.

Suezmax

The published Suezmax time charter equivalent is an average of the rates derived from TD6 and TD20.

Aframax

The published Aframax time charter equivalent is an average of the rates derived from TD7, TD8, TD9, TD14, TD17 and TD19.

Individual Routes

Time charter equivalent assessments are published for the following individual dirty tanker routes:

TD1, TD3, TD6, TD7, TD8, TD9, TD11, TD14, TD17 and TD20

The TCEs are calculated using a variable feed of bunker prices supplied by Bunkerworld. Variable exchange rates supplied under licence by XE.com are also used for adjusting port costs. Port charges used in this calculation are provided under licence by Cory Brothers.

Baltic Exchange Clean Tanker Index (BCTI) TC1 75,000mt CPP/naphtha condensate. Middle East Gulf to Japan

Baltic Exchange Clean Tanker Index (BCTI)

TC1

75,000mt CPP/naphtha condensate. Middle East Gulf to Japan (Ras Tanura to Yokohama). Laydays/cancelling 30/35 days from index date. Age max 12 yrs. 3.75% total commission.

TC2_37

37,000mt CPP/UNL. Continent to US Atlantic coast (Rotterdam to New York). Laydays/cancelling 10/14 days from index date. Age max 15 yrs. 3.75% total commission.

TC5

55,000mt CPP/UNL naphtha condensate. Middle East Gulf to Japan (Ras Tanura to Yokohama). Laydays cancelling 30/35 days from index date. Age max 15 yrs. 3.75% total commission.

TC6

30,000mt CPP/UNL. Algeria to European Mediterranean (Skikda to Lavera). Laydays cancelling 7/14 days from index date. Age max 15 yrs. 3.75% total commission.

TC8

65,000mt CPP/UNL middle distillate. Middle East Gulf to UK-Cont (Jubail to Rotterdam). Laydays/cancelling 20/30 days from index date. Double hull, age max 15 yrs. This route to be reported as US$ per mt. 3.75% total commission.

TC9

22,000mt CPP/UNL/ULSD middle distillate. Baltic to UK-Cont (Primorsk to Le Havre). Laydays/cancelling 5/10 days from index date. Double hull, age max 15 yrs. 3.75% total commission.

TC14

38,000mt CPP/UNL/diesel. US Gulf to Continent (Houston to Amsterdam). Laydays/cancelling 6/12 days from index date. Age max 15 yrs. 3.75% total commission.

Note: All vessels reported to have major oil company approval.

Time Charter Equivalent Calculations (TCEs) Time Charter Equivalent (TCE) assessments for clean tankers are made

Time Charter Equivalent Calculations (TCEs)

Time Charter Equivalent (TCE) assessments for clean tankers are made up of average dollar pricing conversions for Medium Range (MR) Product tankers derived from a range of routes already reported on by the Baltic Exchange and expressed in Worldscale. In addition, TCE assessments for individual routes are also reported.

TCE Calculations for clean tankers

MR Atlantic Triangulation

TC2_37 TCE in combination with TC14 TCE

Rotterdam to New York, ballast to Houston for voyage Houston to Amsterdam re positioning at Rotterdam

Individual Routes

TCE equivalent assessments are published for the following individual clean tanker routes:

TC1, TC2_37, , TC5 and TC14 with, TC4, TC7, TC10, TC11 (Asia reported), TC12 (Asia reported) and TC14.

The TCEs are calculated using a variable feed of bunker prices supplied by Bunkerworld. Variable exchange rates supplied under licence by XE.com are also used for adjusting port costs. Port charges used in this calculation are provided under licence by Cory Brothers.

Baltic Exchange International Tanker Routes – Asia TC4 30,000mt CPP/UNL. Singapore to Japan (Singapore to

Baltic Exchange International Tanker Routes Asia

TC4

30,000mt CPP/UNL. Singapore to Japan (Singapore to Chiba). Laydays/cancelling 7/14 days from index date. Age max 15 yrs. 3.75% total commission.

TC7

30,000mt CPP. Singapore to east coast Australia (Singapore to Sydney). Laydays/cancelling 17/23 days from index date. Double hull, age max 15 yrs. 3.75% total commission.

TC10

40,000mt CPP/UNL. South Korea to west coast North Pacific (South Korea to Vancouver Rosarito range). Laydays/cancelling 14/21 days from index date. Double hull, age max 15 yrs. 3.75% total commission.

TC11

40,000mt CPP. South Korea to Singapore. Laydays/cancelling 10/17 days from index date. Oil major approved, double hull, age max 15 yrs. 3.75% total commission.

TC12

35,000mt naphtha condensate. West coast India to Japan (Sikka (Jamnagar) to Chiba). Laydays/cancelling 7/14 days from index date. Oil major approved, double hull, age max 15 yrs. 3.75% total commission.

Note: All vessels reported to have major oil company approval.

Time Charter Equivalent Calculations (TCE)

Individual Routes

Time Charter Equivalent Calculations (TCE) Individual Routes Time charter equivalent assessments are published for the

Time charter equivalent assessments are published for the following individual BITR- Asia tanker routes:

TC4, TC7, TC10, TC11 and TC12

MR Pacific Triangulation

TC12 TCE in combination with TC11 TCE

Sikka-Jamnagar to Chiba, ballast to Yeosu for voyage Yeosu to Singapore re- positioning in Sikka.

We utilise our standard MR as on all our MR TCEs.

47,000mt dwt, double hull 27,500 grt 14.5 knots on 30mt IFO (380 CST) ballast 14.5 knots on 36mt IFO (380 CST) laden

In port consumption:

2

days loading 5mt IFO per day

2

days discharging 12mt IFO per day

1

days waiting at anchorage 5mt IFO per day.

Baltic Liquefied Petroleum Gas (BLPG) 44,000 mt, 5% more or less in owner’s option, 1

Baltic Liquefied Petroleum Gas (BLPG)

44,000mt, 5% more or less in owner’s option, 1 to 2 grades, fully refrigerated liquefied petroleum gas, Laydays/cancelling 10/40 days from index date. Middle East Gulf to Japan (Ras Tanura to Chiba). Laytime 96 hrs total. Age max 20 yrs. 1.25% total commission.

Baltic Exchange Sale and Purchase Assessments (BSPA) The assessments on which the panellists report are:

Baltic Exchange Sale and Purchase Assessments (BSPA)

The assessments on which the panellists report are:

1. VLCC 305,000mt dwt double hull built in “first class competitive yard”, European standard B&W main engine. LOA 332m, beam 58m, 15.5 knots service speed laden on 90mt fuel oil. Non coated. Not ice classed. 5 years old. Special survey passed. Delivery 2-3 months, charter free. 2% total commission.

2. Aframax 105,000mt dwt double hull built in “first class competitive yard”, European standard B&W main engine. LOA 248m, beam 42m, 15.5 knots service speed laden on 50mt fuel oil. Non-coated. Not ice classed. 5 years old. Special survey passed. Delivery 2-3 months, charter free. 2% total commission.

3. MR Tanker 51,000mt dwt on 13.2m draft SSW. Double hull built in “first class competitive yard”, European standard B&W main engine. LOA 183m, beam 32.2m, 13.5 knots service speed on 31/28mt fuel oil (laden/ballast). Coated, IMO 2/3, deep well. Not ice classed. 5 years old. Special survey passed. Delivery 2-3 months, charter free. 2% total commission.

4. Capesize 172,000mt dwt on 17.75m draft SSW built in “first class competitive yard”. LOA 289m, beam 45m, 190,000cbm grain. 14.5 knots laden and 15 knots ballast on 56mt fuel oil, no diesel at sea. Not ice classed. 5 years old. Special survey passed. Delivery 2-3 months, charter free. 2% total commission.

5. Panamax 74,000mt dwt on 13.95m draft SSW built in “first class competitive yard”. LOA 225m, beam 32.2m, 89,000cbm grain. 14 knots on 32/28mt fuel oil (laden/ballast) and no diesel at sea. Not ice classed. 5 years old. Special survey passed. Delivery 2-3 months, charter free. 2% total commission.

6. “Mitsui 56” type Supramax 56,052mt dwt on 12.575m draft SSW built in “first class competitive yard” - European standard B&W main engine. LOA 189.99m, beam 32.26m, 70,810cbm grain. 5 holds/hatches, 4 x 30mt cranes with 4 x 12cbm grabs. Not ice classed. 5 years old. Special survey passed. Delivery 2-3 months, charter free. 2% total commission.

Baltic Exchange Demolition Assessments (BDA) The assessments on which the panellists report are: 1. Dirty

Baltic Exchange Demolition Assessments (BDA)

The assessments on which the panellists report are:

1. Dirty tanker, China. One light displacement long ton scrap between 15,000 and 25,000 light weight, gas free for man entry. Delivery China 15-30 days from index date, as is, under own power, cash price. Total commission 2%.

2. Dirty tanker, Pakistan-Bangladesh range. One light displacement long ton scrap between 15,000 and 25,000 lightweight, gas free for man entry. Delivery Pakistan-Bangladesh range 15-30 days from index date, as is, under own power, cash price. Total commission 3%.

3. Product tanker, China. One light displacement long ton between 6,000 and 10,000 light weight, gas free for man entry. Delivery China 15-30 days from index date, as is, under own power, cash price. Total commission 2%.

4. Product tanker, Pakistan-Bangladesh range. One light displacement long ton scrap between 6,000 and 10,000 light weight, gas free for man entry. Delivery Pakistan-Bangladesh range 15-30 days from index date, as is, under own power, cash price. Total commission 3%.

5. Bulk carrier, China. One light displacement long ton scrap between 7,000 and 12,000 light weight. Delivery China 15-30 days from index date, as is, under own power, cash price. Total commission 2%.

6. Bulk carrier, Pakistan-Bangladesh range. One light displacement long ton scrap between 7,000 and 12,000 light weight. Delivery Pakistan-Bangladesh range 15-30 days from index date, as is, under own power, cash price. Total commission 3%.

APPENDIX 2

Details of Index Calculations

APPENDIX 2 Details of Index Calculations 1. Each route assessment (or sales & purchase and demolition

1. Each route assessment (or sales & purchase and demolition assessment) is created by calculating an average of ALL of the panellist inputs provided to the Baltic.

2. From the various route assessments provided the Baltic calculates and publishes the following derived rates.

BCI 2014

The Capesize Index is calculated using a combination of the rates for each of the reported routes and multipliers as follow. Full route descriptions are in Appendix 1

Route

Description

Weighting (on 10 April 2014)

C2

160,000 ore Tubarao/Rotterdam

5%

C3

160-170,000 ore Tubarao/Qingdao

15%

C4

150,000 coal Richards Bay/Rotterdam

5%

C5

160-170,000 W Aussie/Qingdao

15%

C7

150,000 coal Bolivar/Rotterdam

5%

C8_14

Trans Atlantic round voyage

5%

C9_14

ARA or Passero trip China-Japan (fronthaul)

7.5%

C10_14

Pacific round voyage

15%

C14

China / Brazil round voyage

15%

C15

160,000 coal , Richards Bay/China

5%

C16

Qingdao-Beilun trip UK-Cont-Med 65 days

7.5%

Capesize

2014

Calculation

detail

Route

Multiplier

Route value

Capesize 2014 Calculation detail Route Multiplier Route value Index contribution C2 10.276695630 7.572000000

Index contribution

C2

10.276695630

7.572000000

77.815139310

C3

14.474995240

19.118000000

276.732958998

C4

10.178191930

7.985000000

81.272862561

C5

34.242287860

7.450000000

255.105044557

C7

10.096625310

9.140000000

92.283155333

C15

6.567770448

12.955000000

85.085466154

C8_14

0.011232800

11430

128.390904000

C9_14

0.005011588

25955

130.075766540

C10_14

0.019386696

11468

222.326629728

C14

0.020572868

11668

240.044223824

C16

0.087405223

-1814

-158.553074522

Sum

   

1430.579076484

Index

   

1430.579076484

Rounded Index

   

1431

Cape TC Avg

11659.125000000

Cape TC

Rounded

$11,659

Panamax (BPI) The Baltic Exchange Panamax Index is calculated using a combination of the rates

Panamax (BPI)

The Baltic Exchange Panamax Index is calculated using a combination of the rates for each of the reported routes and multipliers as follow. Full descriptions of the routes are shown in Appendix 1.

Route Description

Weighting

P1A_03

Trans Atlantic round voyage

25%

P2A_03

Continent-Mediterranean trip to China-Japan

25%

P3A_03

Trans Pacific round voyage

25%

P4_03

China-Japan trip to Continent-Mediterranean

25%

In addition to the Panamax Time Charter Average an index figure basis 1000 in 1998 is also published.

Route

Multiplier

Route Value

Index Contribution

P1A_03

0.032280358

17308.000000000

558.708436264

P2A_03

0.031407559

24446.000000000

767.789187314

P3A_03

0.030123107

11303.000000000

340.481478421

P4_03

0.029755057

1923.000000000

57.218974611

     

1724.198076610

     

1724.198076610

     

1724

Panamax P3A-IV implied voyage calculation

Panamax P3A-IV implied voyage calculation The Baltic derives from the Panamax P3A TC route an implied

The Baltic derives from the Panamax P3A TC route an implied voyage rate for use as required in commercial transactions. This is defined and calculated as shown below.

Route

Delivery Japan/South Korea range (specifically Pusan used) laydays cancelling 15/20 days ahead in the loading area, for a time charter round trip of 35/50 days with a cargo of coal.

Vessel

The standard "Baltic Type" panamax vessel

Implied voyage equivalent

72,000mt coal loading 1 safe berth Newcastle NSW and discharging 1 safe berth Qingdao.

25,000mt Sundays + holidays included load and 15,000mt Sundays + holidays included discharge 12 hours turn time both ends.

The calculation includes a 7% weather margin and bunkers based on Pusan.

Freight is net of commission and per metric tonne, free in and out and spout trimmed.

Implied P3A calculation process

The implied voyage equivalent is calculated as the US dollar amount per metric tonne that results from adding the net amount of hire received for the total duration of the voyage to the total voyage expenses divided by the cargo intake.

Voyage expenses

Ballast and laden days are calculated. The ballast days are derived by deducting a weather factor (7%) off the ballast speed of 14.0 knots and dividing the result into the distance Pusan to Newcastle (4,464 miles) and dividing that result by 24 hours.

The laden days are derived by deducting a weather factor (7%) off the laden speed of 14.0 knots and dividing the result into the distance Newcastle to Qingdao (4,733 miles) and dividing that result by 24 hours.

The next step is to establish the bunker costs

For the trip's IFO (Intermediate Fuel Oil) ballast consumption, the ballast days (14.29) are multiplied by the daily IFO ballast consumption (28mt per day).

For the trip's IFO (Intermediate Fuel Oil) consumption while loading, the loading port days (3.38 ) are multiplied by the daily IFO loading consumption (3mt per day) and for the MDO (Marine Diesel Oil) consumption the loading port days (3.38) are multiplied by the daily MDO consumption (0.1mt per day).

For the trip's IFO laden consumption, the laden days (15.15) are multiplied by the daily IFO laden consumption (32mt per day). For the trip's IFO

consumption while discharging, the discharging port days (5.3) are multiplied by the daily IFO discharging

consumption while discharging, the discharging port days (5.3) are multiplied by the daily IFO discharging consumption (3mt per day), and for the MDO (Marine Diesel Oil) consumption the discharging port days (5.3) are multiplied by the daily MDO consumption (0.1mt per day).

Adding the results from the calculations described above generates the trip's total IFO and MDO consumption. These figures are then multiplied by the IFO and MDO market prices per mt (based on Pusan and supplied by Bunkerworld), which produces the total IFO and MDO cost for the trip.

A further allowance of US $15,000 is added for miscellaneous expenses/cleaning.

The voyage expenses are then calculated as the sum of the total IFO cost, the total MDO cost and miscellaneous charges, the load port charges (Newcastle) and the discharge port charges (Qingdao). These port figures are provided in US $. However, when received in local currencies, the foreign exchange rates are sourced from XE.com.

All port cost related information is provided by Cory Brothers Shipping. Qingdao includes tonnage dues.

Distances are provided by Netpas.

Bunker prices provided by Bunkerworld.

Duration

Duration The total voyage days are the sum of ballast (14.29) + loading (3.38) + laden

The total voyage days are the sum of ballast (14.29) + loading (3.38) + laden (15.15) + discharging (5.3).

Total 38.11 (rounded) days.

Net hire

Taking the total estimated duration of the voyage (38.11 days) and multiplying it by the time charter rate route assessment published on route P3A less 3.75% commission.

Please note that the calculation takes place using seven decimal places and is only rounded at the end.

Implied voyage rate

Dividing the product of the Net Hire and Total Voyage Expenses by the estimated cargo intake of 72,000mt

Distances used in this calculation are provided by Netpas (www.netpas.net)

Bunker prices used in this calculation are provided under licence by Bunkerworld (www.bunkerworld.com)

All port cost related information is provided by Cory Brothers Shipping (www.cory.co.uk)

To view the implied route port cost rates go to:

Supramax (BSI) The Baltic Exchange Supramax Timecharter Average is calculated as a weighted average of

Supramax (BSI)

The Baltic Exchange Supramax Timecharter Average is calculated as a weighted average of the rates for each of the reported routes as follows. Full descriptions of the routes are shown in Appendix 4 below.

Route Description

Weighting

S1A

Continent trip Singapore-Japan inc China

12.5%

S1B

Black Sea trip Singapore-Japan inc China

12.5%

S2

Trans Pacific round voyage

25%

S3

South Korea-Japan trip Europe

25%

S4A

US Gulf trip Europe

12.5%

S4B

Europe trip US Gulf

12.5%

The following routes are not a component part for calculating the BSI or TC average.

S5

W Africa trip via ECSA to Singapore-Japan

0%

S9

W Africa trip via ECSA to Skaw-Passero

0%

In addition to the Supramax Time Charter Average, an index figure basis 1000 in 2005 is also published, which began at 1000 as the Baltic Handymax Index (BHI) on 7 January 1997. When the vessel size increased this was renamed the BHMI on 2 September 2000. It became the BSI on 1 July 2005. The index is calculated using a combination of the rates for the reported routes and multipliers as follow. Routes S5 and S9 do not contribute.

Supramax Index 0.095637068     Multiplier Route Route Multiplier Route Average Index

Supramax Index

0.095637068

   

Multiplier

Route

Route Multiplier

Route Average

Index

Contribution

S1A

0.125000000

21529.000000000

2691.125000000

S1B

0.125000000

19667.000000000

2458.375000000

S2

0.250000000

7763.000000000

1940.750000000

S3

0.250000000

4458.000000000

1114.500000000

S4A

0.125000000

29688.000000000

3711.000000000

S4B

0.125000000

8306.000000000

1038.250000000

     

12954.000000000

     

1238.882578872

     

1239

Baltic Exchange Supramax Asia (BES Asia)

The Baltic Exchange Supramax Asia Timecharter Average is the average of the rates for each of the reported routes as follows. Full descriptions of the routes are shown in Appendix 1.

Route

Description

Weighting

S8

China/Indonesia trip to EC India

33.33%

S10

N.China/Indonesia round voyage

33.33%

S11

Mid-China/Australia or transpacific round voyage

33.33%

Handysize (BHSI)

Handysize (BHSI) The Baltic Exchange Handysize Index is calculated as a weighted average of the rates

The Baltic Exchange Handysize Index is calculated as a weighted average of the rates for each of the reported routes as follows, with the weightings as shown. Full descriptions of the routes are shown in Appendix 1.

Route

Description

Weighting

HS1

Europe trip east coast South America

12.5%

HS2

Europe trip east coast North America

12.5%

HS3

East coast South America trip Europe

12.5%

HS4

US Gulf trip Europe

12.5%

HS5

South East Asia, trip via Australia to Singapore/

25%

Japan inc China

HS6

South Korea/Japan trip via north Pacific to

25%

Singapore/Japan inc China

Route

Multiplier

Route value

Index

Contribution

HS1

0.011479686

9825.000000000

112.787914950

HS2

0.009901618

8000.000000000

79.212944000

HS3

0.006995497

15025.000000000

105.107342425

HS4

0.009772844

19936.000000000

194.831417984

HS5

0.015174507

8378.000000000

127.132019646

HS6

0.015899136

8256.000000000

131.263266816

     

750.334905821

     

750.334905821

     

750

Baltic Exchange Dirty Tanker Index (BDTI)

Baltic Exchange Dirty Tanker Index (BDTI) The BDTI is calculated from all of the currently reported

The BDTI is calculated from all of the currently reported dirty tanker routes as follows:

TD1

(280,000mt, Middle East Gulf to US Gulf)

TD2

(270,000mt, Middle East Gulf to Singapore)

TD3

(265,000mt, Middle East Gulf to Japan)

TD4

(260,000mt, West Africa to US Gulf)

TD6

(135,000mt, Black Sea/Mediterranean)

TD7

(80,000mt, North Sea to Continent)

TD8

(80,000mt, Crude and/or DPP Heat 135F, Kuwait to Singapore)

TD9

(70,000mt, Caribbean to US Gulf)

TD12

(55,000mt, fuel oil, Amsterdam-Rotterdam-Antwerp range to US Gulf)

TD14

(80,000mt, no heat crude, SE Asia to EC Australia)

TD15

(260,000mt, no heat crude, West Africa to China)

TD17

(100,000mt crude. Baltic to UK-Cont)

TD18

(30,000mt fuel oil Baltic to UK-Cont)

TD19

(80,000mt, cross Mediterranean)

TD20

(130,000mt W Africa to Rotterdam)

BDTI       Index Multiplier 8.645389324     Route Multiplier WS   TD1

BDTI

     

Index Multiplier

8.645389324

   

Route

Multiplier

WS

 

TD1

1

32.88

33

TD2

1

63.45

63

TD3

1

61.6

62

TD4

1

75.31

75

TD6

1

100.65

101

TD7

1

104.17

104

TD8

1

148.67

149

TD9

1

156.5

157

TD12

1

149.17

149

TD14

1

172.44

172

TD15

1

64.22

64

TD17

1

84.44

84

TD18

1

173.57

174

TD19

1

109.89

110

TD20

1

91.94

92

Average

 

105.926666667

 

Average x multiplier

   

915.777273141

Rounded Index

   

916

Baltic Exchange Clean Tanker Index (BCTI)

The BCTI is calculated from the following currently reported clean tanker routes:

TC1 (75,000mt CPP/UNL Naphtha Middle East Gulf to Japan) TC2_37 (37,000mt CPP/UNL Rotterdam to New

TC1

(75,000mt CPP/UNL Naphtha Middle East Gulf to Japan)

TC2_37

(37,000mt CPP/UNL Rotterdam to New York)

TC5

(55,000mt CPP/UNL Naphtha Ras Tanura to Yokohama)

TC6

(30,000mt CPP/UNL Euromed - Skikda to Lavera)

TC8

(65,000mt CPP/UNL/ULSD Middle East Gulf to UKCont)

TC9

(22,000mt CPP/UNL/ULSD Baltic to UKCont)

TC14

(38,000mt CPP/UNL/Diesel USG to Cont)

The index is the rounded average of the route rates multiplied by a factor which is currently 4.667399883

BCTI

Index Multiplier

4.517980403

Route

WS Value

TC1

1

110.67

TC2_37

1

226.11

TC5

1

117.5

TC6

1

215.63

TC9

1

240.36

Average

182.0519841

Average x

822.507296644

multiplier

Rounded Index

823

The Baltic provides daily time charter equivalent (TCEs) calculations for different vessel types as follows:

The Baltic provides daily time charter equivalent (TCEs) calculations for different vessel types as follows:

VLCC

The published VLCC time-charter equivalent is an average of the rates derived from TD1 and TD3.

Suezmax

The published Suezmax time-charter equivalent is an average of the rates derived from TD6 and TD20.

Aframax

The published Aframax time-charter equivalent is an average of the rates derived from TD7, TD8, TD9, TD14, TD17 and TD19.

Revisions to index component and weightings

When a revision to an index is introduced the old and new indices are reported in full and in parallel for one reporting day in order to establish the correct revision to the multiplier needed to ensure a continuous time series of data. This is irrespective of other much more elaborate measures needed to avoid disruption to the market as a result of changes to routes and vessels, which is extensively discussed in Section

13.

APPENDIX 3

Route Notes

General

APPENDIX 3 Route Notes General Panellists are reminded that the elected port or ports for load

Panellists are reminded that the elected port or ports for load or discharge in the route description must be the ones on which they base their assessments. This is particularly important when for whatever reason freight premiums are obtained over and above other ports in the area.

In the event of port closure, the Board would have to be convened at the earliest opportunity to assess the situation.

1. Baltic Exchange Capesize Index

All routes are as “always afloat within International Navigation Limits (I.N.L)and based on the Baltic capesize 2014 vessel description.

Route C3

Disbursements. Panellists should report on the basis of normal port disbursements at load and discharge ports. This figure is subject to periodic review by the Baltic and is usually guided by the underlying annual contracts of affreightment (COAs) contracted by the shippers/receivers.

Route C5

Disbursements. See Route C3.

Route C9_14 and C9_03

Delivery position. Panellists should note that ships fixed with delivery west of cape Passero up to, but not including, Antwerp have not delivered in accordance with the route description. These positions are often more favourable to charterers as they are closer to most load ports. Panellists are expected to take this into account in adjusting fixtures to index terms.

Route C16_14 and C11_03

Redelivery position. Panellists should note that ships fixed with redelivery west of cape Passero up to Antwerp have not redelivered in accordance with the route description. These positions are often more favourable to owners as they are closer to most subsequent load ports. Panellists are expected to take this into account in adjusting fixtures to index terms.

2. Baltic Exchange Panamax Index

2. Baltic Exchange Panamax Index All route s are as “always afloat except where NAABSA is

All routes are as “always afloat except where NAABSA is customary and within I.N.L.” and based on the Baltic Panamax vessel description.

Route 1A_03

Fixtures concluded on APS terms. Panellists’ attention is drawn to the general note 11.4. (Assessing Time charter fixtures concluded on APS terms).

In assessing the relevance of these fixtures, panellists will normally consider whether the market structure assumes vessels will ballast into the US Gulf, or whether it assumes vessels have carried cargo into the area, and may make rate adjustments accordingly.

Delivery position. Panellists should note that ships fixed with delivery east of Gibraltar have not delivered in accordance with the route description. Panellists are expected to take this into account in adjusting fixtures to index terms

Redelivery position. Panellists should note that ships fixed with redelivery east of Gibraltar have not redelivered in accordance with the route description. Panellists are expected to take this into account in adjusting fixtures to index terms

Route 2A_03

Delivery position. Panellists should note that ships fixed with delivery east of Gibraltar have not delivered in accordance with the route description. Panellists are expected to take this into account in adjusting fixtures to index terms.

Route 3A_03

Delivery position. Panellists should note that ships fixed with delivery outside Japan-south Korea range have not delivered in accordance with the route description. Panellists are expected to take this into account in adjusting fixtures to index terms

Redelivery position. Panellists should note that ships fixed with redelivery outside Japan-south Korea range have not redelivered in accordance with the route description. Panellists are expected to take this into account in adjusting fixtures to index terms

Route 4A_03

Delivery position. Panellists should note that ships fixed with delivery outside Japan-south Korea range have not delivered in accordance with the route description. Panellists are expected to take this into account in adjusting fixtures to index terms

3. Baltic Exchange Supramax Index and Supramax Asia Index a. All routes are as “always

3. Baltic Exchange Supramax Index and Supramax Asia Index

a. All routes are as “always afloat within I.N.L.” and based on the Baltic supramax vessel description.

b. Each route is based on laydays 5 days from index date, with cancelling

10 days from index date. The routes will not be limited by specific

cargo descriptions, except where stated (BES Asia S8,S10 & S11).

c. Cargo and trading exclusions. Whilst no specific cargo and trading exclusions are included in route descriptions, panellists will be aware of market norms at any time. Where fixtures have been concluded at rates which may appear to be particularly high (or low) because exceptional flexibility has been given to charterers (or exceptions restrictions imposed on them), panellists will use their judgement to make appropriate adjustments.

4. Baltic Exchange Handysize Index

a. All routes are as “always afloat within I.N.L.” and based on the Baltic handysize vessel description.

b. Each route is based on laydays 5 days from index date, with cancelling

10 days from index date. The routes will not be limited by specific

cargo descriptions.

c. Cargo and trading exclusions. Whilst no specific cargo and trading exclusions are included in route descriptions, panellists will be aware of market norms at any time. Where fixtures have been concluded at rates which may appear to be particularly high (or low) because exceptional flexibility has been given to charterers (or exceptions restrictions imposed on them), panellists will use their judgement to make appropriate adjustments.

d. Route HS1/HS2 - With a delivery of Skaw-Passero this covers both Mediterranean and Continent markets. There will inevitably be fluctuations in the relative strengths between these areas and when this occurs panellists are expected to average their returns to reflect the overall value within the delivery range.

5. Baltic Exchange Dirty Tanker Index, Baltic Exchange Clean Tanker Index and Baltic International Tanker Routes Asia.

a. Rate assessments are quoted in Worldscale rates (Copyright Worldscale Association) or dollar per day (for TCEs) or in certain

cases in $/mt. The Baltic Exchange does not take responsibility for the conversion of Worldscale

cases in $/mt. The Baltic Exchange does not take responsibility for the conversion of Worldscale rates into monetary values.

b. End of year Worldscale change. Panellists are required to report their assessments according to the current Worldscale rates prevailing up to the last reporting day of the year. Thereafter the next year's Worldscale rates will apply.

c. Panellists are reminded that the elected port or ports for load or discharge in the route description must be the ones on which they base their assessments. This is particularly important when for whatever reason freight premiums are obtained over and above other ports in the area.

In the event of port closure, the FIFC would have to be convened at the earliest opportunity to assess the situation.

APPENDIX 4

APPENDIX 4 The time charter equivalent ( TCE ) calculation, which is always represented by a

The time charter equivalent (TCE) calculation, which is always represented by a final nett figure is calculated per the process outlined below. For this example we are basing on BDTI route TD3 (Ras Tanura to Chiba).

TD3 TCE Calculation Process

The nett time charter equivalent (TCE) is calculated as the income received less the total expenses and that result is then divided by the total number of days of the voyage duration.

Expenses

Initially laden and ballast days are calculated.

The laden days are derived by adding a weather factor (5%) to the laden miles (6,655) and dividing the result by the daily speed (13.0 knots per hour multiplied by 24 hours). The ballast days are calculated in the same manner, with the ballast miles (6,655) basis a speed 12.5 knots being used. (often the laden mileage and ballast mileage are the same).

The next step is establishing the bunker costs.

For the trip's IFO (Intermediate Fuel Oil) consumption while loading, the loading days (2 days) are multiplied by the daily IFO loading consumption (20 mt per day).

For the trip's IFO laden consumption, the laden days (22.39) are multiplied by the daily IFO laden consumption (70 mt per day).

For the trip's IFO ballast consumption, the ballast days (23.29) are multiplied by the daily IFO ballast consumption (53 mt per day).

For the trip's IFO consumption while discharging, the discharging days (2 days) are multiplied by the daily IFO discharging consumption (110 mt per day).

Finally for the trip's IFO consumption while waiting, the waiting days (1 day) are multiplied by the daily IFO waiting consumption (10 mt per day).

Adding the results from the calculations described above generates the trip's total IFO consumption. This figure is then multiplied by the IFO market price per mt (based on Singapore 380 CST and supplied by Bunkerworld), which produces the total IFO cost for the trip.

The trip's Total Expenses are calculated as the sum of the total IFO cost, the load port charges (Ras Tanura) and the discharge port charges (Chiba This figure is divided by the USD/Yen rate as this port's charges are provided in Yen). Foreign

exchange rates (including SDRs) are sourced from XE.com. All port cost related information is provided

exchange rates (including SDRs) are sourced from XE.com. All port cost related information is provided by Cory Brothers Shipping.

Income

 Income The Gross Freight of the voyage is calculated by multiplying the cargo quantity (265,000

The Gross Freight of the voyage is calculated by multiplying the cargo quantity (265,000 mt) by the Worldscale flat rate and by the Baltic daily Worldscale route assessment for TD3, divided by 100 (as market levels of freight are expressed as a percentage of the nominal freight rate).

Please note that the Gross freight allows for the Keiyo Sea Berth Worldscale differential.

- Discounting the gross freight by the broker commission (2.5%) produces the Nett Freight.

Duration

The total voyage days are the sum of loading (2), laden (22.39), ballast (23.29), discharging (2), waiting (1) days.

TD3 TCE

- Deducting the total expenses from the nett freight produces the Nett Income

- Dividing the nett income by the total voyage days (50.68) gives us the Timecharter Equivalent (TCE) rate for TD3.

  VLCC VLCC SUEZMAX SUEZMAX TD1 TD3 TD6 TD20 Ballast speed (knots) 12.50 12.50
 

VLCC

VLCC

SUEZMAX

SUEZMAX

TD1

TD3

TD6

TD20

Ballast speed (knots)

12.50

12.50

12.50

12.50

Laden speed (knots)

13.00

13.00

13.00

13.00

IFO Ballast cons

53.00

53.00

44.00

44.00

IFO Laden cons

70.00

70.00

53.00

53.00

IFO cons at load

20.00

20.00

12.00

12.00

IFO cons at disch

110.00

110.00

68.00

68.00

IFO cons at Anchorage

10.00

10.00

10.00

10.00

Load Port

Ras Tanura

Ras Tanura

Novo

Off' Bonny

Disch Port

Loop

Chiba

Augusta

Rotterdam

Ballast Miles

9,631

6,655

1,269

4,475

Laden Miles

12,338

6,655

1,269

4,474

Cargo Quantity (mt)

280,000

265,000

135,000

130,000

Commission %

2.50

2.50

2.50

2.50

Port Costs Load

Cory Bros

Cory Bros

Cory Bros

Cory Bros

Port Costs Disch

Cory Bros

Cory Bros

Cory Bros

Cory Bros

Canal Dues

Cory Bros

n/a

Cory Bros

Cory Bros

WS Differential

n/a

n/a

n/a

n/a

WorldScale Flat Rate

refer WS

refer WS

refer WS

refer WS

IFO price used

Spore

Spore

Rtdm

Rtdm

Ballast IFO cons

1839.55

1234.32

283.43

689.15

Laden IFO cons

2906.55

1567.53

226.17

798.01

Loading IFO cons

40

40

24

24

Disch IFO cons

220

220

136

136

Waiting IFO cons

15

10

10

10

Total Voyage IFO cons

5006.10

3061.85

669.59

1647.16

Weather Factor

5%

5%

5%

5%

Days Ballast 33.71 23.29 4.44 15.66 Days Laden 41.52 22.39 4.27 15.06 Days Loading 2

Days Ballast

33.71

23.29

4.44

15.66

Days Laden

41.52

22.39

4.27

15.06

Days Loading

2

2

2

2

Days Disch

2

2

2

2

Days Waiting

1.5

1

1

1

Days Canal

1

n/a

2

n/a

Total Voyage Days

81.73

50.68

15.71

35.72

AFRAMAX

AFRAMAX

AFRAMAX