Awards & Assessments
Assessments by the London Tanker Brokers' Panel are based on up-to-the minute market information as well as statistical and research data produced by Panel members covering the international tanker industry.
Types
Most of the assessments fall into the following categories:
• Single voyage rate
• Demurrage rate
• Timecharter rate
• Consecutive voyage rate
• Contract of Affreightment rate
• Average single voyage rates in specified trades over a specified period for a stipulated size range.
Though all requests for assistance in the determination of a tanker charter rate are considered except for rate forecasts. Clients are expected to provide acceptable terms of reference for the required assessment, (see Awards and Assessments - Terms of Reference) but the Panel can advise on the wording before a request is submitted formally or incorporated into a contract.
Method
When a rate award is requested, the Panel members identify market fixtures that compare as closely as possible with the terms of reference given. When a close comparison is not possible, the members use their judgement, as brokers, based on whatever information is available - for example, their day to day activities involving market intelligence, negotiations in which they may be involved, or their continuous dialogue with owners and charterers as well as other brokers.
The Panel meets twice each month (normally on the second working day of the month and on a day mid-month, between the 20th-22nd of the month) to deal with requests for a variety of rate awards and assessments. The Panel also prides itself on its flexibility and will (for a small addition to the main fee) deal with any requests for awards or assessments that are required urgently and will reply to those within two working days.
Independence
To preserve its reputation for independence and impartiality the Panel does not provide details or explanations or enter into discussions as to why or how a particular rate assessment is arrived at. In addition, the Panel has a strict policy of not providing expert witnesses under any circumstances. (Its policy precludes it from providing forecasts of future rates).
