SUBSCRIBER NOTE: Platts to amend freight netbacks for FOB Black Sea VGO cargo assessments

Effective February 1, 2019, S&P Global Platts will amend the Worldscale rate used to calculate the freight netbacks for its FOB Black Sea low sulfur vacuum gasoil and high sulfur VGO assessments.

This amendment follows the release of Worldscale Association circular number 8 on January 4, 2019, which revised the $/mt flat rates for all voyages involving Tuapse.

The Worldscale Association said it was increasing the flat rate by 17 cents/mt for all voyages involving Tuapse.

"In light of recent information regarding significant towage cost increases at Tuapse," the Worldscale Association said in the circular, it was "necessary to revise all rates involving loading or discharging at this port."

As a result of the change highlighted in this circular, the flat rate used to calculate the netback formulas for FOB Black Sea VGO cargoes (assessment codes: ABBAD00 and ABBAC00) as a freight netback from CIF Mediterranean cargoes becomes $7.19/mt, effective February 1, 2019.

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