Baltic Operating Expense Index (BOI)

11-September-2019

London based shipping organisation Baltic Exchange launches ship operating costs index named Baltic Operating Expense Index (BOI) which aims to promote transparency for shipowners with a new assessment of ship operating costs. Baltic Operating Expense Index (BOI) will be published every three months. Baltic Operating Expense Index (BOI) will be based on assessments from three (3) ship managers:

  • Anglo-Eastern
  • Columbia Shipmanagement
  • Fleet Management

Three (3) giant shipmanagement companies handle more than 1,800 vessels. Furthermore, in near future three (3) giant shipmanagement companies will join the panel to calculate a residual price. Initially, Baltic Operating Expense Index (BOI) will cover bulk carriers, but will later cover tankers and other sectors. London based shipping organisation Baltic Exchange’s CEO Mark Jackson mentioned that Baltic Operating Expense Index (BOI) is aiming to provide transparency to the fluctuations in running costs. According to CEO Mark Jackson, ship’s daily operating costs are one of the variables used by shipping investors to calculate the profitability and residual value of their assets. Baltic Exchange has already provide independent freight, sale and purchase and recycling assessments. Baltic Operating Expense Index (BOI) will assist shipping investors to manage their risk and aide decision process.

Each panel members (Anglo-Eastern, Columbia Shipmanagement, Fleet Management) will submit daily expenses:

  • Crew
  • Technical
  • Insurance
  • Dry-dock

Dry-dock reflects a five-year (5) period and will be published separately and not used towards the Baltic Operating Expense Index (BOI). Baltic Operating Expense Index (BOI) will be released on 17 October 2019. Baltic Operating Expense Index (BOI) will cover five years (5) old and special surveys (SS) passed handysize, supramax, panamax and capesize bulk carriers.