Commodity trader Mercuria Energy Group has launched a London trial accusing the Baltic Exchange of continuing to publish the benchmark TD3C oil tanker rate during the Iran war due to fears of losing business to rivals. The Baltic Exchange, founded in 1774, maintains it consulted the market and that shipping through the Strait of Hormuz remained possible despite severe disruptions. Mercuria argues the index was distorted and should have been suspended, citing internal documents where assessors called the rate "crazy" and "utter nonsense." The TD3C rate, which sets global tanker earnings and underpins billions in derivatives, is based on supertanker freight from Saudi Arabia to China.
Mercuria, which has large index-linked exposures, claims the exchange prioritized market relevance over accuracy. The Baltic Exchange calls the lawsuit "without merit," stating it met all obligations and that Hormuz passage remained viable. Flows have since recovered to near pre-war levels.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing