SUBSCRIBER NOTE: Platts amends basis for delivered USGC naphtha to DAP

(Please note that this subscriber note corrects the code for the monthly average for standard barge naphtha in the table. An incorrect code appeared in the subscriber note published April 3 under the same headline. The correct code is AALPH00.)

S&P Global Platts has amended the contract basis reflected in its delivered US Gulf Coast standard naphtha and heavy naphtha assessments to Delivered At Place, or DAP, from the current Cost, Insurance and Freight, or CIF, starting April 3, 2017.

This follows a decision note published March 14, 2017, which can be found at https://www.platts.com/subscriber-notes-details/21151182. Platts published a proposal note October 14, 2016, suggesting a change of terms from CIF to DES, or Delivered Ex-Ship, and an updated proposal note, published January 12, 2017, suggesting the change in terms from CIF to DAP. The updated proposal was published following observations from participants in the Gulf Coast naphtha market as well as observed market indications that suggested most trade of these products was now being conducted on a DAP basis rather than on a CIF or DES basis.

Feedback received has also indicated that trades on a DAP basis are generally at parity with trades on a CIF basis.

The change affects the USGC heavy naphtha and standard naphtha barge flat price assessments, as well as the associated differentials against the waterborne USGC conventional gasoline assessment.

The affected assessments are:

Assessment Code Monthly average Heavy naphtha barge AALPI00 AALPJ00 Heavy naphtha barge AASHD00 AASHD03 vs USGC waterborne Standard naphtha barge AALPG00 AALPH00 Standard naphtha barge AASGZ00 AASGZ03 vs USGC waterborne

Under DAP agreements, title for a given product passes to the buyer at the destination at the time at which the product is ready for unloading. The seller pays all the costs of transportation up to and including the delivery of the goods to the final named destination.

For any further questions or comments, please email americas_products@spglobal.com, with a cc to pricegroup@spglobal.com.

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