Platts to continue excluding EU ETS carbon offset costs in tanker freight assessments

Following an immediate period of market feedback, Platts has decided to not implement its Feb. 1 proposal to include European Union Emission Trading System (EU ETS) carbon offset costs in its tanker freight assessments from March 1, 2024.

Instead, Platts' existing clean and dirty freight assessments will remain carbon exclusive, including the Aframax 80,000 mt UKC-UKC Worldscale (PFAKD10) and $/mt (TDACD00) assessments, which were originally proposed to change effective May 1. The methodology note can be accessed here. The benchmark Aframax 70,000 mt USGC-UKC Worldscale (TDUCG00) and $/mt (TDUCF00) assessments will also remain exclusive of carbon offset costs.

Platts will continue to consult with the market on the changes and impact of the carbon offset costs on the freight markets and how these changes may be best reflected in future methodology updates. The original proposal was published Feb 1, 2024 and can be accessed here .

Tanker freight in markets where the loading and/or discharge ports fall within the scope of the EU ETS will continue to be assessed by Platts in line with the existing freight methodology, which can be seen here.

Platts will continue to publish any bids, offers, trades or indicative market values both inclusive and exclusive of EU ETS carbon offsetting costs as those become available. Fixtures and market indications inclusive of carbon costs are normalized to carbon-exclusive levels. For example, if some freight indications are reported on a given route excluding the cost to offset the carbon dioxide emissions and others are reported including that cost, the Platts freight rate will be assessed basis the former value and the inclusive indications will be normalized.

Separately, Platts is proposing to amend its carbon-accounted freight methodology to reflect inclusive spot fixtures rather than a fixed calculation.

Please send all comments or questions to tankers@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 to the public upon request.