New assessments to aid transparency and growth
in global tanker freight market
LONDON, NEW
YORK, SINGAPORE,
May 16,
2023 /PRNewswire/ -- Platts, part of S&P Global
Commodity Insights, the leading independent provider of
information, analytics and benchmark prices for the commodities and
energy markets, today announced that on May
15, 2023, it launched Platts Base Rates based on
conventional bunker fuel and liquefied natural gas (LNG) bunker
fuel, providing a standardized estimate of the cost of moving a
tanker on a given route. This marks the first-ever comprehensive
offering of base rates incorporating alternative fuel pricing and
it complements Platts' pre-existing, well-established suite of
voyage and time-charter tanker freight assessments.
Platts Base Rates can be applied to calculate tanker freight
rates based on "Points" and dollars per ton, as well as various
product netback and net forward assessments, along with crude oil
yield and netback prices.
Peter Norfolk, S&P Global
Commodity Insights Editorial Director of Global Shipping &
Freight, said, "This launch is historic for Platts and the
industry, with a new and unique tanker freight scale being
introduced for the first time in decades. In addition, we offer
market participants Platts Base Rates that are calculated using
alternative bunker fuels. With both yearly and dynamic options,
Platts Base Rates aim to help the shipping industry navigate the
energy transition with heightened price transparency."
With sustainability and energy transition a growing focus
globally, S&P Global Commodity Insights expects the maritime
sector's use of alternative fuels including LNG to grow
significantly in the next few years, with Platts Base Rates
enhancing supply chain insights and shedding light on pricing for
the future fuel mix.
Platts Base Rates are largely future proofed for use in
tanker freight assessments and can easily replicate standard rates
based on alternative bunker fuels such as LNG, Methanol and
Ammonia. Platts will publish yearly Base Rates along with dynamic
Base Rates - published daily using daily Singapore and Rotterdam bunker price assessments.
The calculation of the Base Rate has one established assumption,
which is to list all the possible costs for the entire voyage and
divide it by the deadweight tonnage of the standard vessel to
arrive at the $/MT Base Rate, which equates to 100 points on the
scale. Given market evolution and the tanker sector's growing
preference for larger-size vessels, the Platts Base Rates are
calculated on the basis of a larger tanker size of 105,000
deadweight (dwt).
For additional information on shipping price assessments,
contact shipping@spgobal.com. More shipping-related information can
be found here.
Media Contacts:
Global/EMEA: Paul Sandell, +44 7816 180039,
paul.sandell@spglobal.com
Americas: Kathleen Tanzy, + 1917 331
4607, kathleen.tanzy@spglobal.com
Asia: Melissa Tan, + 65 68189
7569, melissa.tan@spglobal.com
About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of
global energy and commodity markets enables our customers to make
decisions with conviction and create long-term, sustainable
value.
We are a trusted connector that brings together thought leaders,
market participants, governments, and regulators and we create
solutions that lead to progress. Vital to navigating commodity
markets, our coverage includes oil and gas, power, chemicals,
metals, agriculture, shipping and energy transition.
Platts® products and services, including the most
significant benchmark price assessments in the physical commodity
markets, are offered through S&P Global Commodity
Insights.
S&P Global Commodity Insights is a division of S&P
Global (NYSE: SPGI). S&P Global is the world's foremost
provider of credit ratings, benchmarks, analytics and workflow
solutions in the global capital, commodity and automotive markets.
With every one of our offerings, we help many of the world's
leading organizations navigate the economic landscape so they can
plan for tomorrow, today. For more information visit
https://www.spglobal.com/commodityinsights.
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SOURCE S&P Global Commodity Insights