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General Index-Signal Ocean’s benchmarks will combine Signal’s vessel and voyage data with GI’s quantitative methodologies
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Market players will get an accurate view of fluctuating freight rates, be able to monitor their vessel emissions and quantify the financial cost involved
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The benchmarks will allow shipowners and charterers to trade CO₂ emissions when the industry comes under the EU’s Emissions Trading System next year
Benchmark provider General Index and maritime data specialist and software platform Signal Ocean will offer a set of carbon dioxide (CO₂) and ocean freight benchmarks that combine Signal’s vessel and voyage data with GI’s quantitative and well-established methodologies.
This combination will provide market participants an accurate view of fluctuating freight rates and allow them to monitor their historical and estimated vessel emissions and quantify the financial cost these involve, the two companies said after signing the deal on June 6.
Using its tuned models, Signal will provide detailed estimates of greenhouse gases emitted on a vessel-by-vessel basis.
The service will cover the key global trading routes for crude oil and refined products, starting in the Atlantic Basin. General Index will operate the benchmarks via its tech-native methodologies and production systems, incorporating trade information from its data contributors.
The ocean freight and CO₂ benchmarks are the first phases of an ambitious plan of collaboration between the two firms.
The move comes ahead of the expected entry of shipping into the European Union’s Emissions Trading System in 2023. The collaboration will provide the industry’s first normalized emissions benchmark, allowing shipowners and charterers to trade CO₂ emissions.
“Signal Ocean, like General Index, is a data-driven technology company that uses high-quality data and trusted modelling,” said Ioannis Martinos, chief executive of Signal.
“We’ve combined this with decades of market knowledge and experience as a commercial vessel operator to create a unique set of data APIs that help solve a number of persistent problems in the analysis of shipping markets.”
Martinos said partnering with GI will allow his firm to provide new tools to help market players better understand their emissions performance and manage their financial exposure.
Neil Bradford, chief executive and founder of General Index, said: “Partnering with the Signal team allows us to leverage our benchmark technology and expertise to create relevant indexes that will support the maritime industry as its energy transition journey accelerates.
“With maritime coming under the EU’s Emissions Trading System (ETS) in January 2023, the time is right to partner with Signal Group, a recognized authority in the maritime industry.”
Signal Ocean’s services are used by shipowners, traders and energy majors who control about 50% of the world’s crude oil spot tonnage and cargoes to support their chartering decisions.
Dry bulk voyages are also covered by Signal Ocean, while containers and LNG/LPG are being tested with design clients.
Launched in March 2020, General Index is authorized by the UK’s Financial Conduct Authority as a benchmark administrator and is compliant with EU Benchmark Regulation. It offers high-quality assessments for established commodity markets and new innovative solutions using its technology-native approach.
