| Contract Overview: | A freight swap is an agreement to exchange a stream of cash flows by reference to the difference between a fixed rate and a floating rate based on a specified notional amount over a specified term to maturity. |
| Trade Date: | As agreed by the parties. |
| Effective Date: | The date on which the calculation of accrued obligations begins under the swap. |
| Reference Routes: | Dry Timecharter Basket Routes CTC (Capesize TC Avg 4) PTC (Panamax TC Avg 4) STC (Supramax TC Avg 6) HTC (Handysize (TC Avg 6) Dry Voyage Routes Day Trip Timecharter Routes $ per Tonne Tanker Routes |
| Notional Amount: | As agreed by the parties for each relevant commodity. |
| Settlement Dates: | As agreed by the parties. |
| Termination Date: | As agreed by the parties. |
| Fixed Price Payer: | Party [A/B] |
| Fixed Price | As agreed by the parties. |
| Floating Price Payer: | Party [B/A] |
| Floating Price: | Dry Timecharter Basket Routes In respect of daily settlement, the floating price will be the end of day price as supplied by the Baltic Exchange. In respect of final settlement, the floating price will be the mean of the daily Baltic Exchange spot price assessments for every trading day in the expiry month.
Dry Voyage Routes In respect of daily settlement, the floating price will be the end of day price as supplied by the Baltic Exchange. In respect of final settlement, the floating price will be the mean of the daily Baltic Exchange spot price assessments for every trading day in the expiry month. Day Trip Timecharter Routes In respect of daily settlement, the floating price will be the end of day price as supplied by the Baltic Exchange. In respect of final settlement for P1A, P2A & P3A, the floating price will be the mean of the last 7 Baltic Exchange spot price assessments in the expiry month. In respect of final settlement for P1E, P2E & P3E, the floating price will be the mean of the daily Baltic Exchange spot price assessments for every trading day in the expiry month. $ per Tonne Tanker Routes In respect of daily settlement, the floating price will be the end of day price (in $/t) as supplied by the Baltic Exchange. In respect of final settlement, the floating price will be a price in US$ per mt calculated as the mean of the Baltic Exchange WS rate spot price assessments multiplied by the Flat Rate divided by 100 for each pricing date in the expiry month. |
| Price Source: | Baltic Exchange. |
| Pring Date(s): | If applicable, as agreed by the parties. |
| Method of Averaging: | If applicable, as agreed by the parties. |
Freight Swaps
If the freight swap is accepted for clearing by a clearing organization, the terms and conditions of the freight swap incorporate by reference such terms and conditions established by the relevant clearing organization in its rules or bylaws. If the freight swap is not submitted for clearing to a clearing organization, the terms and conditions of the freight swap incorporate by reference such credit and other terms as the parties may establish through their pre-existing bilateral agreement. The freight swap has the following characteristics:
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