S&P Global discontinues East Coast Canada-US Atlantic Coast MR clean tanker freight assessment March 1

S&P Global Platts has discontinued its 38,000 mt Medium Range East Coast Canada-US Atlantic Coast clean tanker assessment, effective March 1, 2022, due to a significant drop in spot liquidity in recent years.

According to market data observed by S&P Global, spot fixtures on the East Coast Canada-USAC route have decreased from 76 in 2019 to 43 in 2020, and to 16 in 2021.

In 2021, almost 90% of trade flows on the route originated at St. John, and S&P Global understands that cargoes from Irving's refinery in St. John are typically fixed on a time charter basis.

In addition, the decrease in spot liquidity on this route was further exacerbated following the shutdown of the Come by Chance refinery in Newfoundland in March 2020.

The company has announced plans to convert the refinery into a renewable diesel and sustainable aviation fuel plant in 2022.

While renewable fuels can be shipped on Medium Range tankers, as well as on chemical tankers, S&P Global understands they are typically fixed at a differential to typical refined oil product cargo due to cleaning requirements in the tanks.

The discontinuation affects the following:

The assessments were published in the Clean Tankerwire and Clean Tankerwire Monthly publications; on Platts Global Alert pages 1912 and 1913, and on Platts Shipping Alert pages 2320 and 2321; and in the S&P Global price database under the codes above.

Please send any further feedback, comments or questions to shipping@spglobal.com and pricegroup@spglobal.com.

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