Baltic Exchange introduces monthly audits for physical panellists to further improve Baltic index quality
Baltic Exchange has launched a new quality control mechanism to support its ongoing audit policies for its global portfolio of panellists across the dry, tanker and gas sectors.
The newly launched monthly audit, known as ‘Operational Benching’, is a process that enables the Baltic Exchange’s assessors to more effectively and proactively review physical panellists suitability to report on certain shipping routes and enhance the robustness, transparency and reliability of its industry-leading benchmark indices.
Operational Benching was implemented following an internal review by Baltic Exchange that identified that panellist submissions needed to be assessed more frequently to capture potential risks in panellists’ ability to meet key operational performance targets. These include ensuring that assessments are submitted within a defined reporting window, providing key evidence to validate their contributions, and conducting a statistical analysis of the assessments. This is known as the Quality of Market Assessments (QMA), which measures Lagging and Conformity to the index, as well as Independence, and how reliant a Panellist is on the previous day’s index.
As a result of the new Operational Benching process, panellists who fail to meet these KPIs may be temporarily “benched” for a month, or until a Senior Assessor at Baltic Exchange approves their reinstatement. The formal benching process remains confidential between Baltic Exchange and the panellist.
Rashad Issa (pictured), Quality & Business Improvement Lead at Baltic Exchange and the lead for the Operational Benching initiative, said: “Our benchmarks are only as strong as the data behind them. By introducing this new Operational Benching framework, we are holding ourselves and our panellists to the high standards we expect. We can act quickly when key performance targets are not met, while offering support and guidance to further improve the reliability and effectiveness of our indices. It is all part of our commitment to ensuring the Baltic’s indices remain the most trusted and reliable in the industry”.
Mark Jackson, CEO of Baltic Exchange, commented: “This is a very important step for the Baltic. Our partnership with our panellists is at the heart of everything we do. The Operational Benching process helps ensure that everyone contributing to our indices operates to the highest possible standards.”
By continuously setting a higher bar for operational excellence and encouraging consistent best practice, Baltic Exchange is reinforcing its role as the world’s most trusted source of maritime market benchmarks across key shipping trades and routes.
As part of the launch of its new Operational Benching process , Baltic Exchange has released a new White Paper, which includes detailed information on how the benching process works and key performance indicators that panellists must adhere to. Please find attached a copy of this White Paper.