SUBSCRIBER NOTE: Platts proposes to include Baltic ports in calculation of ice premium assessment in Dirty Tankerwire

Platts proposes to include more Baltic ports in the calculation of its ice premium assessment published on the Dirty Tankerwire, which reflects the extra Worldscale points negotiated for ice-class Aframaxes loading 100,000 mt cargoes in the Baltic region during the ice season.

By widening the number of ports under assessment, Platts wishes to provide greater clarity in its assessment on the premiums paid for ice-class vessels over non-ice-class vessels in the region. At the moment, the assessment is named "Primorsk-UKC ice premium" and appears on the fixed page PGA MH1960, which will change to "Baltic-UKC ice premium." This change will also be accordingly reflected on the Dirty Tankerwire.

Primorsk port is unavailable for non-ice tonnage during the ice season, so by widening the assessment inputs to include other Baltic ports, the assessment will reflect a regional difference in price between ice-class vessels calling at ice restricted ports and non-ice-class vessels calling at the ice-free ports during the winter season.

The traditionally ice-free ports of Tallinn in Estonia, Ventspils in Latvia and Klaipeda in Lithuania will be used as the base loading ports for non-ice-class freight rate calculations. In case of extreme weather conditions that would restrict non-ice-class tonnage from entering the above ports, any other ice-free crude or fuel oil Aframax loading terminal in the Baltic will be used instead. The assessment will be based on the deals reported, bids, offers and indications from the market players for both ice and non-ice tonnage fixtures.

For example, if according to data collected on the day, the rate for ice-class Aframaxes loading in the Baltic and going to UK Continent is Worldscale 150 and the rate for non-ice-class Aframaxes is w120, than the "Baltic-UKC ice premium" assessment will be equal to w30, which is the spread between the two.

Please send all comments or questions by May 8, 2015 to tankers@platts.com and pricegroup@platts.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.