Baltic Exchange indexes take curiously different paths amid Hormuz crisis
- MEG VLCC index initially tripled Atlantic basin rates amid extreme assessment spreads; MEG VLCC rates have fallen with more price discovery and much lower assessment spreads
- MEG VLGC index did not rise materially higher vs Atlantic basin rates in March-May, then jumped in June-July with more price discovery but higher assessment spreads
- Disparities between VLCC and VLGC indexes are cited in the Mercuria case against Baltic Exchange, which goes to trial in October
As the security situation violently seesaws back and forth in the Strait of Hormuz, the dynamics have changed for Baltic Exchange indexes measuring freight for ships that brave the transit
