SUBSCRIBER NOTE: Platts to amend laycan in Singapore-delivered bunker assessments

(Resending Subscriber note published April 11, 2018, with no changes to text)

S&P Global Platts will amend the delivery period reflected in its assessment of delivered bunker prices in Singapore from July 2, 2018, following market consultation on a proposal note published March 9, 2018.

The proposal note can be viewed at https://www.platts.com/subscriber-notes-details/27921807

In the initial proposal, Platts proposed to implement these changes from June 1, but has now delayed this change until July 2.

Effective July 2, Platts will amend the assessed delivery period to 5-10 days from the date of publication from the current 3-7 days for 180 CST, 380 CST, 500 CST, marine gasoil and low-sulfur marine gasoil assessments for delivered bunkers in Singapore.

Platts is also updating its guidelines for participants in the Platts Market on Close assessment process for delivered Singapore bunkers to ensure they conform with broader market practice.

From July 2, Platts will publish bids, offers and interest to trade where the buyer and sellers specify three consecutive days for delivery within the assessment laycan of 5-10 days from the date of publication.

For example, on July 2, Platts will publish interest from buyers and sellers for bunker deliveries on July 7-9, July 8-10, July 9-11 and July 10-12. In addition, for 180 CST, 380 CST and 500 CST delivered bunkers MOC, Platts will publish bids and offers for volumes in a 100-mt range for parcels under 1,000 mt, and in a 200-mt range for parcels above 1,000 mt.

Buyers and sellers may submit bids and offers for the following volume range: 500-600 mt, 600-700 mt, 700-800 mt, 800-900 mt, 900-1,000 mt, 1,000-1,200 mt, 1,100-1,300 mt, 1,200-1,400 mt and 1,300-1,500 mt.

Buyers must declare the exact volume to the seller within one working day after the trade has been concluded.

Buyers must also provide to the seller a written notice of arrival of the nominated vessel at the place of delivery at least 48 hours prior to the day of delivery. Sellers are expected to deliver bunker fuel that is merchantable, within port limits to the buyer's nominated vessel in a timely manner. The changes follow extensive consultation with the industry to ensure trading activity reflected in Platts assessments continues to reflect typical market trading cycles and standard practices.

Prices assessed would continue to reflect activity reported to Platts throughout the day, and values for all reported trades normalized to reflect the prevailing value of the market at 5.30 p.m in Singapore.

Platts understands deals in the Singapore-delivered bunker market are typically performed using the seller's general terms and conditions. Platts expects counterparties to perform on trades reported in the MOC based on typical GT&Cs that have been applied and accepted by both counterparties in the open market.

Please send all feedback and comments to asia_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.