SUBSCRIBER NOTE: Platts amends 2018 freight netbacks for FOB Med 0.1% gasoil

Effective February 1, 2018, S&P Global Platts will amend the Worldscale rates used to calculate the freight netbacks for its FOB Mediterranean 0.1% gasoil assessment.

This amendment follows the release of Worldscale Association circular number 4 on January 9, 2018, which revises the $/mt flat rates for all cargoes loading or discharging at the Russian port of Novorossiysk. Worldscale Association stated that it was resolving the flat rates to and from the port of Novorossiysk "in light of recent information received regarding a revised port tariff structure."

Platts published a subscriber note detailing the effect of the changes on Platts' freight assessments on December 20, 2017. This note is available here: https://www.platts.com/subscriber-notes-details/26859959. In light of the changes highlighted in the circular, Platts is revising its annual WS flat rates for the following assessments and voyages.

The flat rate used to calculate the netback formulas for FOB Mediterranean 0.1% gasoil cargoes (assessment code: AAVJI00) becomes $7.46/mt.

The new flat rate takes into account the 18 cents/mt deduction applicable to the published Novorossiysk-Genoa and Novorossiysk-Lavera routes which are contemplated by the basket of rates. The remaining routes -- Malta-Genoa; Malta-Lavera; Batumi-Genoa; Batumi-Lavera -- remain unaffected.

Please send all comments or questions to Europe_Products@spglobal.com and pricegroup@platts.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.