S&P Global Commodity Insights eliminates use of 'hand blends' in trades reported through US MOC process for 0.5%S marine fuel

S&P Global Commodity Insights has eliminated the use of 'hand blends' in trades reported through the US Platts Market on Close assessment process for 0.5%S marine fuel, effective May 2, 2022.

The decision follows a subscriber note and consultation on all US Gulf and Atlantic Coast Marine Fuel 0.5%S markets that began Feb. 4, 2021, and a decision to eliminate hand blends published Oct. 4, 2021: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/100421-platts-to-eliminate-use-of-hand-blends-in-trades-reported-through-us-moc-process-for-05s-marine-fuel

In the initial consultation, S&P Global sought feedback on the fungibility and frequency of hand blends for similar-sized stems of 0.5%S transactions, and the typical number of tanks employed. Market feedback suggested it was not common for 0.5%S marine fuel to be delivered from multiple tanks for a single transaction and blended on the receiving vessel in the US for barge-sized transactions.

S&P Global understands that the stricter sulfur requirements imposed by the IMO 2020 regulations for 0.5%S marine fuel has resulted in trades that are often close to the maximum specifications compared to HSFO, and feedback suggests that hand blends may have a higher likelihood of specification and quality issues.

There are no changes to the use of hand blends on trades reported through the Platts MOC in any of the other US residual fuel markets.

Please send all feedback, comments or questions to americas_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.