London: The Baltic Exchange has started a trial on India - China iron ore voyage equivalent rate. The daily rate is based on the existing S7 India-China supramax iron ore time charter route and no fixtures are taken into consideration. "We think that this service will be of particular interest to the many shipowners, charterers and freight traders active in the growing Indian iron ore export market," said Jeremy Penn, ceo of the Baltic Exchange. Indian iron ore exports have reached 110m tonnes a year driving demand for such an assessment. "We have already seen FFA trading interest emerging on the major iron ore C3 and C5 routes and we think the S7 calculation will be a very useful tool for hedging freight and calculating implied fob commodity prices," said John Banaszkiewicz, managing director of FIS. [11/03/10]
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