Platts proposes to amend STS nomination procedures in CIF European refined products

S&P Global Platts proposes to amend the methodology for nomination procedures for ship-to-ship transfers reflected in its CIF European products cargo assessments from May 18, 2020.

Platts CIF refined product cargo assessments in Northwest Europe and in the Mediterranean reflect offers where the seller has the option to make final delivery on a vessel that had received its cargo on a ship-to-ship basis. As per Platts published methodology, should the seller elect to deliver a CIF cargo that has loaded on a ship-to-ship basis, the binding quantity and quality would be established on a ship's composite basis in the final delivering vessel.

Platts has observed that ship-vetting procedures typically extend to the vessel from which the performing vessel has loaded. Under current CIF nomination procedures, Platts guidelines require that sellers nominate the performing vessel narrow the five-day delivery range to a three-day delivery range by the earliest of five clear calendar or three clear working days before the first day of the narrowed delivery range.

However, in instances of STS-based performance, Platts has observed that this timing may be insufficient. Therefore, Platts proposes that from May 18, should a seller elect to deliver on a vessel that loaded its cargo on a ship-to-ship basis, it should provide vessel nomination and narrow laycan by the earliest of seven clear calendar or five clear working days before the first day of the actual delivery. In line with market standard, this guidance would not apply to performing vessels which have completed loading prior to being put forward to buyers for nomination.

Please send all questions and comments to Europe_products@spglobal.com and pricegroup@spglobal.com by April 28, 2020. 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.