Platts proposes to launch USGC-UKC/Med VLCC dirty tanker assessments April 3

Platts, part of S&P Global Commodity Insights, proposes to launch two daily 270,000 mt Very Large Crude Carrier dirty tanker freight assessments on the US Gulf Coast-to-UK Continent/Mediterranean routes, effective April 3, to provide transparency into this growing trade flow.

US crude exports to Europe rose 39% to 1.48 million b/d in 2022 compared with 2021, US Census data showed, amid changing trade flows following the Russia-Ukraine conflict, with VLCCs taking an increasing market share. During the same period, USGC crude exports to Europe on VLCC tankers surged eightfold to 15.9 million mt in 2022 from 1.6 million mt in 2021, according to data from S&P Global Commodities at Sea.

The proposed VLCC assessment would add to the Aframax and Suezmax freight assessments on the USGC-UKC/Med routes Platts launched March 1, 2018, and April 1, 2019, respectively. The assessments are detailed at the following links: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030118-platts-launches-usgc-loading-dirty-tanker-assessments and https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/040119-platts-launches-usgc-europe-suezmax-dirty-freight-assessments.

The new VLCC assessments would be published on a lump sum basis and their equivalent US dollar per metric ton value.

The new assessments would be:

VLCC US Gulf Coast to UK Continent 270,000mt: This assessment would reflect the cost of chartering a VLCC tanker carrying a cargo of 270,000 mt from the US Gulf Coast to the UK Continent, for loading 15-45 days forward. The assessment would reflect full 270,000 mt STS US Gulf Coast loadings, excluding the lightering costs and terminal charges for partial loads at the Enbridge Ingleside Energy Center and the South Texas Gateway terminals, and discharge at UK Continent ports, including but not limited to Rotterdam, Wilhelmshaven, Fawley, Le Havre, Bilbao and STS Southwold.

VLCC US Gulf Coast to Mediterranean 270,000mt: This assessment would reflect the cost of chartering a VLCC tanker carrying a cargo of 270,000 mt from the US Gulf Coast to the Mediterranean, for loading 15-45 days forward. The assessment would reflect full 270,000 mt STS US Gulf Coast loadings, excluding the lightering costs and terminal charges for partial loads at the Enbridge Ingleside Energy Center and the South Texas Gateway terminals, and discharge at Mediterranean ports, including but not limited to Algeciras, Gibraltar, Marsaxlokk and Marseille.

Please send all comments or questions by Feb. 28, 2023, to shipping@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.