Platts proposes to launch weighted average Atlantic Supramax dry bulk TCE indexes from June 1

Platts, part of S&P Global Commodity Insights, is proposing to start publishing new daily weighted average Supramax time charter equivalent, or TCE, indices reflecting Atlantic trade, basis 0.5% sulfur bunker fuel and scrubber-fitted ships, and comprising ton-mile rates of six key TCE assessments, from June 1, 2023. The new indices will be called ASI 6 and ASI 6S.

The ASI 6 index would be a demand-weighted average of six key time charter equivalent assessments basis 0.5% sulfur bunker fuel, while ASI 6S would be an average of the same TCE assessments basis scrubber-fitted ships.

These new indexes would reflect an important part of the global dry bulk market that is otherwise not reflected in existing price benchmarks. Supramax vessels in the Atlantic Ocean typically remain within the region and the associated flows depend significantly on triangulation, which helps to minimize ballast time as well as boost tonnage utilization and earnings.

The new indices would reflect this important vessel flow that includes the movement of commodities such as grains, scrap and petcoke.

The ASI 6 index assessments for the 57,000 dwt Supramax class vessel would be derived by applying an allocated weighting to the daily Supramax TCE assessments of six key voyages published at 4.30 pm London time. The index assessment would follow the Platts London publishing schedule.

Weighting for the individual TCE assessments would be determined by the volume of Supramax vessel movements observed between the regions associated with the respective voyages in the last three years from Commodities at Sea trade-flow software, calculated in ton-miles.

Ton-mile demand is calculated by multiplying the volume of cargo moved in metric tons by distance traveled in miles.

From June 1, 2023, the weighting for the average TCE assessment would be as follows, based on flows observed over Jan. 1, 2020 to Dec. 31, 2022:

Basis bunker fuel 0.5%:

Route Voyage

Weighting (%)

PSTCE12L DOP SWP, New Orleans, Louisiana to Kashima, Japan 18.2%

PSTCE17L DOP SWP, Houston, Texas to Krishnapatnam, India 16.4%

PSTCE11L DOP SWP, New Orleans, Louisiana to Iskenderun, Turkey 5.8%

PSTCE291L DOP Gibraltar, Santos, Brazil to Qingdao, China 27.8%

PSTCE32L DOP Recalada San Lorenzo, Argentina to Bejaia, Algeria 28.2%

PSTCE16L DOP Rotterdam, Netherlands to Aliaga, Turkey 3.6%

Basis scrubber fitted:

Route Voyage

Weighting (%)

PSTCE12 DOP SWP, New Orleans, Louisiana to Kashima, Japan 18.2%

PSTCE17 DOP SWP, Houston, Texas to Krishnapatnam, India 16.4%

PSTCE11 DOP SWP, New Orleans, Louisiana to Iskenderun, Turkey 5.8%

PSTCE291 DOP Gibraltar, Santos, Brazil to Qingdao, China 27.8%

PSTCE32 DOP Recalada San Lorenzo, Argentina to Bejaia, Algeria 28.2%

PSTCE16 DOP Rotterdam, Netherlands to Aliaga, Turkey 3.6%

Please send all comments or questions by April 24, 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.