SUBSCRIBER NOTE: Platts to launch Panamax implied freight rate

S&P Global Platts proposes to launch a new calculated freight rate for the Newcastle, east coast Australia, to Kinuura, Japan, 75,000 mt (plus/minus 10%) route, effective June 1, 2018.

Newcastle ships close to 80 million mt of coal to Japan annually, which makes up slightly over 50% of the port's coal volumes. There is a lack of spot fixtures on this route with the majority of the coal cargoes destined for Japan being moved on vessels using long term contracts.

Platts proposes to use its Hay Point, Australia, to Qingdao, China, Panamax Time Charter Equivalent (TCE) assessment (price database code: MRYFA00) to arrive at an implied Newcastle, east coast Australia, to Kinuura, Japan, 75,000 mt (plus/minus 10%) dollar per metric ton rate.

To derive the implied freight rate from the TCE assessment, Platts will also include port charges, vessel speed and fuel consumption. Platts has surveyed market participants to arrive at values for these that reflect standard market practice. The bunkering port considered will be Shanghai.

The assessment will appear in Dry Freight Wire.

Please send any feedback or questions by May 11, 2018 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.