The Baltic Exchange has revealed its escrow finance service has continued to gain traction over the last few months.
The operation, launched in October 2018, was intended to hold deposits for ship sale transactions, but has since also helped with payments for dispute resolution.
The UK exchange did not issue financial details, but it said new transactions had been completed in the fourth quarter of last year and in the first quarter of 2020.
Based in Singapore, the service facilitates both shipping and non-shipping transactions around the world.
The Baltic's escrow head, Dmitry Pismenny, said there had been growing interest in the service.
"We look forward to continuing to support our diverse client base and aim to become the go-to service provider for any situation which calls for an escrow agent,” he added.
"The escrow service can be used by both Baltic members and non-members, with members enjoying lower fees on the service. For transactions that also involve a Baltic panellist broker, the fee is further reduced."
Legal and S&P transactions completed
V Bala, a partner in shipping at Singapore law firm Rajah & Tann, said he had approached the Baltic Exchange to provide escrow services in a complex settlement agreement.
"Speed was key in achieving the settlement, and the Baltic Exchange lent a listening ear and provided excellent service to the parties and their advisors in assisting them in reaching the desired outcome," he added.
Federico Grimaldi, sale and purchase manager at Dutch shipowner Vroon, said his company had carried out a sale and purchase deal using the service, which he called "professional, swift and efficient".
Based on a new Baltic escrow form, it is be subject to the Singapore Exchange's (SGX) detailed compliance and money laundering procedures.
OCBC Bank was brought in to provide the joint deposit account, and UOB is also now on board.
