Platts clarifies quality and testing procedures reflected in its FOB Rotterdam Marine Fuel 0.5%S barge assessments

S&P Global Platts would like to clarify quality and testing procedures reflected in its FOB Rotterdam Marine Fuel 0.5%S barge assessments.

Platts barge assessments for Marine Fuel 0.5% reflect residual marine fuels (RMG fuels as defined by the International Organization for Standardization in document ISO 8217:2010 Petroleum products - Fuels (class F) - Specifications of marine fuels) with a maximum sulfur limit of 0.5%, and a minimum viscosity of 30 CST globally.

All 0.5% barge transactions reported during the EMEA Platts MOC process must be tested against every parameter of the RMG standards, including viscosity.

A seller must provide the buyer with test results from all 16 parameters listed under the RMG ISO 8217:2010 specification before the loading for the barges at the nominated terminal.

In addition, the International Standards Organization released its Publicly Available Specification 23263:2019 document regarding Marine Fuel 0.5%S quality in September 2019.

In that document, the ISO stated that the Total Sediment Accelerated test typically employed for bunker deliveries may be unreliable for the new fuel. As such, the ISO recommended the use of the Total Sediment Potential test. The TSP test requires 24 hours for a result to be given.

Per the ISOs recommendation, Platts expects sellers in the MOC to provide buyers with COAs showing a complete TSP result. Furthermore, Platts understands that 0.5% blends tend to be unstable after an extended period of time and can degrade in quality due to oxygenation.

The TSP test should therefore be completed within a reasonable time before the loading of the barge at the nominated terminal.

For FOB barge trades published in the MOC, Platts considers retesting of retained samples a necessary step to determine if the original test was fully reflective of the quality delivered, and sellers should not reject such requests for retesting.

Buyers requests to re-test the load port sample should be made only in cases where later testing differs from the load port test beyond repeatability and/ or reproducibility. A seller should have a retained sample available.

The cost of testing should be mutually agreed between both counterparties. S&P Global Platts would like to remind market participants that Platts oil assessments reflect products meeting the parameters detailed in its published methodology, with a requirement that oil must be of broadly merchantable quality.

As stated in Platts published methodology, product reflected in Platts fuel oil assessments "shall not contain petrochemical wastes, residues from acid-catalyzed refining process, spent chemicals, waste lubricants, tar bottoms or hazardous waste."

Furthermore, product that contains any material beyond the trace level that is proven to cause significant ship engine damage is considered unmerchantable.

Platts seeks to ensure that its assessments continue to reflect standard market practice, and that performance against trades reported in the Market on Close process reflect best practices for operations and delivery of bunkers-suitable product.

Please send all comments 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.