The Baltic Exchange has introduced a monthly audit system called “Operational Benching” to enhance the quality of its benchmark indices across the dry, tanker, and gas sectors. This initiative aims to provide a more thorough and proactive assessment of physical panellists, ensuring their suitability to report on specific shipping routes. The goal is to improve the robustness, transparency, and reliability of the Baltic’s industry-leading benchmarks. This new monthly audit process follows an internal review by the Baltic Exchange, which revealed the need for more frequent evaluations of panellist submissions.
The assessments focus on capturing risks related to adherence to operational performance targets. Key metrics include timely submission of assessments, provision of supporting evidence, and rigorous statistical analysis of submissions. This analysis, known as the Quality of Market Assessments (QMA), looks at various factors such as Lagging, Conformity, and Independence while minimizing reliance on previous indices. Under the Operational Benching framework, panellists who do not meet the established key performance indicators (KPIs) may be benched for a month or until they receive approval from a Senior Assessor for reinstatement.
This process remains confidential between the Baltic Exchange and the individual panellist. Rashad Issa, Quality & Business Improvement Lead at Baltic Exchange, emphasized that the strength of their benchmarks is directly tied to the quality of the data submitted. He expressed a commitment to maintaining high standards and supporting panellists in improving their performance. Mark Jackson, CEO of Baltic Exchange, also noted the importance of this initiative in ensuring that all contributors meet the highest operational standards.
Overall, the Baltic Exchange aims to reinforce its position as a leading source of trusted maritime market benchmarks by continuously striving for operational excellence. They have also released a White Paper detailing the new process and the KPIs that panellists must follow.