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What are Platts Time Charter Equivalent Weighted Average Indexes?
What are Platts Time Charter Equivalent Weighted Average Indexes?
Platts TCE indexes are the most accurate, independent and transparent measure of the daily revenue of dry bulk vessels. The three indices are the Cape T4, the KMAX9 and the APSI 5. They represent global averages for both Capesize and Kamsarmax vessels, while the APSI 5 is the Asia-Pacific Supramax Index. For each vessel size, values for both scrubber-fitted and non-scrubber-fitted tonnage are published each day.
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How does Platts assess Time Charter Equivalent Weighted Average Indexes?
How does Platts assess Time Charter Equivalent Weighted Average Indexes?
Platts TCEs are derived from Platts $/mt voyage rate assessments by dividing the net revenue, minus the costs for port charges and bunkers consumed, by the voyage duration. The weights are then applied are based on actual ton-mile demand observed for each sector using Platts trade flow software cFlow, over a three-year period from Jan 1, 2017 to Dec 31, 2019. These weights are then assigned to the TCE rates to arrive at the weighted average index. You can find more details with regards to the methodology in our subscriber notes and specifications guide for global freight.
Subscriber Note - Cape T4 Index >
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Global Capesize Dry Bulk Daily Commentary
What are Platts Time Charter Equivalent Weighted Average Indexes?
Platts TCE indexes are the most accurate, independent and transparent measure of the daily revenue of dry bulk vessels. The three indices are the Cape T4, the KMAX9 and the APSI 5. They represent global averages for both Capesize and Kamsarmax vessels, while the APSI 5 is the Asia-Pacific Supramax Index. For each vessel size, values for both scrubber-fitted and non-scrubber-fitted tonnage are published each day.
Global Capesize Dry Bulk Daily Commentary
Capesize freight rates were a mixed bag as trading activity remained uninspiring out of both basins on the day.
Sources pointed out that market participants' stances were largely unchanged in the Pacific on the day, with many opting to adopt a wait-and-watch approach given the poor weather conditions in Western Australia, which contributed to a subdued Pacific market.
Out of Pacific, the supply-demand situation hardly changed amidst limited fresh Western Australia iron ore volumes amongst operators, while Pacific coal orders were still ample on the day. Among coal fixtures, Welhunt was heard to have fixed a Capesize vessel from Newcastle to Hon Mieu and Cam Pha in Vietnam for March 5-14 laycan but rate details could not be confirmed.
Sources pointed out that Western Australia mining majors continued to stay on the sidelines to assess the impact of Cyclone Zelia and were not heard seeking tonnages in H1 Asian trading hours.
Trading action was stagnant in H2 Asian trading hours as Western Australian iron ore miners remained absent from circulating requirements, with sources pointing out a dearth of exchanges on the Western Australia-China route.
Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Western Australia to Qingdao at $6.05/wmt on Feb. 14, unchanged from Feb. 13.
Activity out of Atlantic picked up slightly albeit fixtures were still relatively sparse. There were a few North Atlantic fronthaul requirements available while NSC was heard to have fixed a Newcastlemax vessel from Pointe Noire to Oita and Nagoya for March 1-10 laycan at around $22.50/wmt on Feb 13.
Meanwhile, sources indicated that ballaster supply remained ample on the Brazil-China route, with a gradually dwindling Brazil cargo list amidst limited fresh cargo requirements. "Someone has to give in given the long [ballaster] list" a ship-operator source quipped, suggesting that shipowners who were largely resisting to conclude fixtures at depressed rate levels were slowly starting to accept charterers' demands.
Among overnight Brazil fixtures, Oldendorff was heard to have fixed a Newcastlemax ship from Tubarao to Qingdao for March 17 onwards laycan at low-$17/wmt.
Among Brazil cargoes, the likes of RWE and Classic were heard seeking ships from Tubarao to Qingdao for March 15-31 and March 21-27 laycans respectively. Indicative Capesize bids were heard edging down on the day, at around mid-$16/wmt on the same route for March 8-16 range of loading dates.
Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Tubarao to Qingdao at $16.95/wmt on Feb. 14, up 20 cents/wmt from Feb. 13.
Out of South Africa, Assmang Ore & Metal was heard to have fixed a 170,000 mt (plus/minus 10%) iron ore cargo from Saldanha Bay to Qingdao for March 5-9 laycan at $11.15/wmt on Feb 13.
Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Saldanha Bay to Qingdao at $11.65/wmt Feb. 14, down 20 cents/wmt from Feb 13.
Platts is part of S&P Global Commodity Insights.