| dc.description.abstract | We examine the shipping industry’s need and interest in changing the way that freight market
indices are made. Our research is conducted due to recent changes in the shipping industry,
with more competition entering the scenery. In addition to this, IMO2020 has sparked debate
regarding how freight market indices are made, the methodology underlying these indices, and
a call for transparency.
Through in-depth interviews with Mark Jackson, CEO of the Baltic Exchange, and three other
prominent voices in the shipping industry and a market-wide survey, we have mapped and
synthesized the general attitudes toward freight market indices in the shipping market. The
survey received responses from a wide range of market participants, capturing the opinions of
respondents with different motivations for using freight market indices. Findings from the
survey show that 76% of the respondents either want to explore alternatives to the Baltic
Exchange indices or change the current methodology. We found that respondents wanting to
explore alternatives to the Baltic Exchange indices were more sceptical of the broker’s
assessments and see the indices as easier to manipulate. Our research provides relevant
findings for both the creators and users of freight market indices as we present an overview of
the market’s appetite for change. We have also mapped the attitudes of different market
participants towards different methodologies. This can be of relevance for index-creators in
their work with development and marketing of both existing and new products. | en_US |
