SUBSCRIBER NOTE CORRECTION: Platts revises USGC propane cargo, shipping laycans

(corrects VLGC freight assessment code names) S&P Global Platts revised its US Gulf Coast propane cargo and freight assessment methodology in terms of laycans, and updated the VLGC freight route methodology from the US Gulf Coast to Japan to reflect current market activity via the Panama Canal, with effect from April 2, 2018. Platts first proposed this change in a subscriber note on November 13, 2017. Platts has received broadly supportive feedback for the change. CHANGE TO USGC PROPANE CARGO AND SHIPPING LAYCANS: Platts revised the laycan for its FOB Houston propane cargo assessment to 30-45 days forward, from the current laycan 15-30 days forward, based on market feedback and observed activity. In addition, Platts also changed the laycan for its VLGC freight assessments for Houston-Japan and Houston-Northwest Europe to 15-45 days forward, from the current 15-30 days forward. Spot activity outside of the assessed loading periods may be considered for assessments, but this information may be normalized. UPDATE TO VLGC HOUSTON-JAPAN FREIGHT ROUTE: Platts updated the Houston-Japan freight route to reflect the most competitive value of chartering a VLGC in the spot market to load propane from the US Gulf Coast for export to Japan. This has typically been via the Panama Canal following the opening of the Neopanamax locks on June 26, 2016. Since then, more than 90% of LPG VLGC shipments from the US Gulf Coast to North Asia have occurred via the Panama Canal, according to Platts trade flow software cFlow. Previous freight methodology did not specify a specific route as most VLGCs could not traverse the Panama Canal prior to the June 2016 expansion. Alongside this note, Platts also published a separate subscriber note, to include additional LPG export terminals on the US Gulf Coast in the FOB Houston propane cargo assessment from April 2, 2018, as well as a change in the name and pricing basis of the cargo assessment and associated monthly averages from FOB Houston to FOB USGC. USGC propane cargo and shipping assessments appear in Platts US Marketscan and Platts LPGasWire; on Platts Global Alert page 780; and in the Platts database under the following codes: ASSESSMENT CODE Propane FOB USGC ($/mt) AAXIM00 Propane FOB USGC vs Propane Mt Belvieu ($/mt) AAXIO00 Propane FOB USGC (cts/gal) AAXIN00 Propane FOB USGC vs Propane Mt Belvieu (cts/gal) AAXIP00 VLGC Freight Houston-Japan ($/mt) AAXIS00 VLGC Freight Houston-Japan (cts/gal) AAXIT00 VLGC Freight Houston-NWE ($/mt) AAXIQ00 VLGC Freight Houston-NWE (cts/gal) AAXIR00 Please send comments and feedback to americas_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.