Baltic Exchange seeks input to expand chemical indices

The Baltic Exchange is urging chemical and product tanker stakeholders to provide detailed feedback on its newly launched chemical freight indices, with the aim of refining and expanding these tools to better support operational and commercial decision-making. 

Speaking at the International Chemical and Product Tanker Conference 2025, held at the Millennium Gloucester Hotel in London 23-24 April 2025, Baltic Exchange head of benchmark production Matthew Cox outlined the Exchange’s strategy to deliver pricing transparency and benchmarking to a sector long considered opaque.

"We are facing so many challenges that what we used to describe as Black Swans now seem commonplace,” he observed, before calling on market participants to engage with the Exchange’s latest initiative.

“The way this product develops is in the market’s hands.”

Nine chemical freight indices, a vegetable oil index and a recently added palm oil index were launched in February 2025. Unlike the Baltic’s more conventional indices – such as those for VLCCs or clean MRs based on standard ships and routes – the chemical indices are parcel-based, with standardised sizes of 5,000, 10,000 and 15,000 tonnes.

“Given the diversity of the chemical tanker market,” said Mr Cox, “we took a different approach. The indices are structured around parcel sizes rather than vessel types.” 

The Baltic intends these benchmarks to be used for a range of purposes, including contract indexation, internal performance evaluation, and forward freight agreements.

“Reliable pricing acts as a useful KPI. We all want to know whether our chartering departments are leaving money on the table,” said Mr Cox.

Initial routes covered include Europe to the US, the US to Asia, and intra-Asian trades. More are planned, but Mr Cox stressed further development depends on industry input.

“If anybody has suggestions for routes or trades that we are missing, then please do approach us,” he said.

Mr Cox also highlighted the growing relevance of the new chemical indices to existing tanker assessments. A comparison between the MR transatlantic TC14 route and the new EC35 easy chemicals route demonstrated strong correlation.

“For those doing easy chems business, TC14 could already be a relevant benchmark,” he noted, underscoring the usefulness of index-linked contracts even before the new indices mature.

In the same session, Kongsberg Group’s Coach Solutions general manager Kasper Nygaard emphasised the importance of high-quality data collection and vessel-specific fuel models to unlock the value of benchmarking.

“Poor data is an incorrect foundation for any fleet optimisation and ultimately it will result in increased costs,” he said.

Coach Solutions has developed a multi-layered data validation framework, combining onboard checks, third-party AIS correlation, and shore-based semi-automated systems.

The goal, said Mr Nygaard, is “one truth across your entire fleet,” enabling accurate speed-consumption modelling, fuel efficiency tracking, and emissions forecasting.

While the tools differ in scope, both speakers stressed the importance of trust, transparency and dialogue.

“We would like the industry to use this product and to feed back,” concluded Mr Cox, “That is how we improve it.”

The International Chemical & Product Tanker Conference 2025 was kindly supported by Gold Sponsors ABS, BV, Coach Solutions, DNV and Lankhorst. Silver Sponsors were Anemoi and bound4blue with support from organisations IPTA and INTERTANKO.