London-based brokerage Freight Investor Services (FIS) has been voted in as the 12th shareholder in Competitive Ship Brokers Ltd (CSBL).
The John Banaszkiewicz-led FIS has joined the outfit two years after it was launched to promote and protect the interests of freight market intermediaries.
More shareholders are likely to join soon, CSBL chief executive Pierre Aury said.
Unanimous vote
FIS’ inclusion was backed unanimously at a CSBL board meeting in London this week.
The organisation was established in 2016 to give brokers a voice when it became apparent the Baltic Exchange would be sold to Singapore’s SGX.
Other CSBL members include Arrow, Banchero Costa, BRS, Fearnleys, Hartland, Ifchor, JF Dillon, Maersk Broker, Rigel, Thurlestone and Yamamizu.
Aury’s brief when he was appointed recently was to persuade more brokerages to join as Baltic panellists renegotiate a renewal of their agreement to provide freight market assessments for the various route indices.
CSBL is concerned that brokers retain control over that information, which is provided free.
Several large broking houses, including Clarksons, Simpson Spence Young and Braemar, are not CSBL shareholders, but Aury said that talks are underway with a “number” of non-member companies about joining.
Eight providers
Derivatives specialist FIS is not one of the Baltic’s physical indices panellists but is among the eight firms providing data for the exchange’s forward freight agreement (FFA) curve calculations.
Banaszkiewicz said that FIS is joining because it sees CSBL as a means of safeguarding brokers’ interests going forward.
He added that there were lots of things happening in the market involving FFAs and the sulphur cap, and that it is important to keep abreast of developments.
Banaszkiewicz serves on the Baltic Exchange Council.
“The more brokers that become [CSBL] members then the more authority it will have,” he said.
Banaszkiewicz believes the Baltic has kept the promises it made to the broking community at the time of the SGX takeover, including involvement and communication with them and other users. But, he said, brokers have to look to the next five years and ensure it stays that way.
He added that Aury, who he has known for two decades, was a good choice as CSBL chief executive given his knowledge of the physical and derivatives markets.
