Platts amends reference freight basket for 0.1% Med gasoil cargoes

S&P Global Platts has amended the basket of ports it uses to assess FOB and CIF Mediterranean 0.1% gasoil cargoes, effective Jan. 4, 2021.

0.1% GASOIL FOB MED NETBACK: In order to better reflect flows of 0.1% gasoil into the Mediterranean, Platts has replaced the Black Sea port of Batumi with the Mediterranean port of Agioi Theodoroi and applied a weighing of 50% for Novorossiisk, 30% for Sarroch and 20% for Agioi Theodoroi, all to Genoa and Lavera, from Jan. 4.

Platts derives its 0.1% gasoil FOB Med cargo assessment (Code: AAVJI00) by applying a freight netback to the 0.1% gasoil CIF Med cargo assessment (AAVJJ00).

From Jan. 4, the calculation will be based on the following routes in the Mediterranean: Sarroch, Novorossiisk and Agioi Theodoroi to Genoa and Lavera using the daily freight rate assessments published in the Platts Clean Tankerwire for Black Sea-Med 30,000 mt cargoes.

0.1% GASOIL CIF MED: In order to better reflect flows of 0.1% gasoil into the Mediterranean, Platts has replaced the Black Sea port of Batumi with the Mediterranean port of Agioi Theodoroi.

CIF indications reported in the Platts Market on Close assessment process are typically normalized back to the reference port of Genoa by using a basket of loadports.

From Jan. 4, the basket of loadports will comprise Agioi Theodoroi, Novorossiisk and Sarroch, each with an equal weighting.

The voyages will be calculated with the applicable Worldscale flat rates by using the daily freight rate assessments for clean Handysize Med-Med and Black Sea-Med routes, as published in Clean TankerWire.

The changes follow on from feedback received during the proposal and consultation period around the relevance of the then-existing loadports in the Mediterranean 0.1% gasoil assessment.

The proposal note, published on June 18, can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/061820-platts-proposes-to-amend-freight-basket-for-01-med-gasoil

The 0.1% gasoil CIF Med cargo assessment is published in Platts European Marketscan and Oilgram Price Report; on Platts Global Alert pages 1400, 1420 and1422; and in the Platts price database under code AAVJJ00.

The 0.1% gasoil FOB Med cargo assessment is published in Platts European Marketscan and Oilgram Price Report; on Platts Global Alert pages 1400, 1420 and 1422; and in the Platts price database under code AAVJI00.

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