Platts amends Montreal bunkers methodology, renames bunker barging rate assessment

Platts, part of S&P Global Commodity Insights, has amended the ex-wharf and delivered volumes assessed for the Montreal bunkers markets for marine fuel 0.5%S, IFO 380 and marine gasoil, effective May 1.

Platts originally proposed this change on Feb. 10 -- the subscriber note for this proposal can be found here.

Platts also has amended the methodology to reflect delivery by truck for all marine fuels in Montreal and renamed the bunker barging rate assessment to reflect the cost for delivery by truck.

Volumes:

Platts has changed the volume range for marine fuel 0.5%S, IFO 380 and MGO to 100 mt to 600 mt on both ex-wharf and delivered basis. The previous range was 250 mt to 1,000 mt on an ex-wharf basis and 250 mt to 500 mt on a delivered basis for marine fuel 0.5%S and IFO 380. Previously for MGO, Platts reflected a typical size of 150 mt ex-wharf and a typical size of 75 mt delivered.

The amended volumes are based on an analysis of Platts heards and feedback from the market. For volumes outside this range, Platts will survey the market to determine the price spread back to volumes between 100 mt and 600 mt.

Platts understands that bunkers prices can vary on an ex-wharf basis by volume, and the narrower volume ranges are proposed to reflect a significant proportion of trading activity while providing more precise assessments.

Delivery:

Platts assesses Montreal bunkers on both an ex-wharf and delivered basis, but understands the majority of the market trades on a delivered basis, which includes trucking costs. Platts will assess the market in Montreal on a delivered basis and subtract the trucking cost to calculate an ex-wharf value.

The affected symbols are as follows:

[PUAFE00] IFO 380 ex-wharf Montreal

[AMFMN00] Marine fuel 0.5%S ex-wharf Montreal

[AAWYS00] MGO ex-wharf Montreal

[AARUP00] IFO 380 delivered Montreal

[AMFMO00] Marine fuel 0.5%S delivered Montreal

[AAWWZ00] MGO delivered Montreal

Platts has renamed the bunker barging rate in Montreal to reflect this change. The amended new name is Bunker trucking rate Montreal.

The affected symbols are as follows:

[AARUC00] Daily

[AARUC03] Monthly

Platts understands that trucks deliver up to 35 mt in Montreal, with the exception of March through May. During these spring months, trucks in the port are required to load only 30 mt per truck due to thawing ground conditions. In both circumstances, the cost per truck is $700. This can cause a change in delivery on a per-metric-ton basis. Platts will survey market participants throughout the year for the most up-to-date delivery costs.

Please send all questions and comments to americasbunkers@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.