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Monday, October 15, 2018

An accessible and reliable Tanker Index will benefit the industry

The International Association of Independent Tanker Owners (INTERTANKO) welcomes initiatives to set up tanker Indices. INTERTANKO believes that if a tanker index were to become internationally acceptable, it could serve as a useful tool for the industry as a consistent quantitative measurement of tanker freight rates, a basis for settlements of contracts, as well as an instrument for hedging and risk management against future market fluctuations.

INTERTANKO’s newly formed Market Research Group has developed a set of requirements that the Association believes that the index must meet if it is to become internationally acceptable.

The index (or indices) should be:

1. an accurate reflection of the real global tanker market

2. trusted, rigorously computed and unbiased

3. published regularly and frequently, preferably daily with conventional as well ass well as electronic dissemination to the
extent possible

4. based on balance and sufficiently expanded input furnished by a representative and authoritative international panel

5. transparent and simple

6. audited and monitored by a recognised independent international body, that must have proper procedures for dealing with complaints

7. low-cost widely and supported by the major participants in the market

8. expressed in unit familiar to the industry such as Worldscale rates

9. a reflection of the freight rates in major trades, and

10. working properly from inception.

INTERTANKO intends to play a pro-active role on behalf of its members and closely monitor, seek out and research available information on all tanker indices in the market.

For further information please contact the INTERTANKO office,
Erik Ranheim, Phone (47) 22 12 26 75

INTERTANKO will arrange an open workshop in Singapore 4 may in connection with its AGM focusing on the development of tanker indices, freight futures and how the industry best can benefit for these initiatives. INTERTANKO invitees all those who have an interest to participate.

The INTERTANKO membership includes, as Full Members, 272 tanker companies with 1,960 tankers totalling 172 million tons deadweight. This is equivalent to 74% of all independently owned tanker tonnage world-wide. In addition, there are 276 INTERTANKO Associate Members.