Baltic Exchange panellists who disagree with its looming takeover by the Singapore Exchange (SGX) should be aware of the risks of splitting the freight index market, cautions chief executive Jeremy Penn.
He says not only would the dry bulk market risk being fragmented but rival freight indices would also likely be much more expensive for users.
“Provision of Baltic indices is very cheap compared with some other commodities markets, such as oil, where market benchmarks are significantly more expensive,” he argued.
