Platts proposes to amend Montreal bunkers methodology, rename bunker barging rate assessment

Platts, part of S&P Global Commodity Insights, proposes to amend the ex-wharf and delivered volumes assessed for the Montreal bunkers markets for Marine Fuel 0.5%S, IFO 380, and MGO, effective May 1.

Platts also proposes to amend the methodology to reflect delivery by truck for all marine fuels in Montreal and rename the bunker barging rate assessment to reflect the cost for delivery by truck.

Volumes:

Platts proposes to change the volume range for Marine Fuel 0.5%S, IFO 380, and MGO to 100 mt to 600 mt on both ex-wharf and delivered basis. The current range is 250-1,000 mt on an ex-wharf basis and 250-500 mt on a delivered basis for Marine Fuel 0.5%S and IFO 380. Currently for MGO, Platts reflects a typical size of 150-mt ex-wharf and a typical size of 75-mt, delivered.

The proposed volumes are based on an analysis of Platts heards and feedback from the market. For volumes outside this range, Platts will survey the market to determine the price spread back to volumes between 100 mt and 600 mt.

Platts understands that bunkers prices can vary on an ex-wharf basis by volume, and the narrower volume ranges are proposed to reflect a significant proportion of trading activity while providing more precise assessments.

Delivery:

Platts assesses Montreal bunkers on both an ex-wharf and delivered basis, but understands the majority of the market trades on a delivered basis, which includes trucking costs. Platts will assess the market in Montreal on a delivered basis and subtract the trucking cost to calculate an ex-wharf value.

Platts is proposing to rename the bunker barging rate in Montreal to reflect this change. The proposed new name would be Bunker trucking rate Montreal.

The affected symbols are as follows:

[AARUC00] Daily

[AARUC03] Monthly

Platts understands that trucks deliver up to 35 mt in Montreal, with the exception of March through May. During these Spring months, trucks in the port are required to load only 30 mt per truck because of thawing ground conditions. In both circumstances, the cost per truck is $700. This can cause a change in delivery on a per-mt basis. Platts will survey market participants throughout the year for the most up-to-date delivery costs.

Please send all questions and comments to oilgroup@spglobal.com and pricegroup@spglobal.com by March 17.

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.