SUBSCRIBER NOTE: Platts to amend CIF NWE naphtha part-cargo demurrage guidelines

After extensive feedback, S&P Global Platts will revise the guidelines reflected in its methodology for CIF NWE naphtha part-cargo demurrage costs from June 1, 2017.

Platts seeks to ensure that neither the buyer nor the seller should be disadvantaged by the seller's decision not to deliver a full cargo.

The current methodology reflects deals in which the demurrage rate paid by the buyer is on a pro-rata basis to normal destinations in NWE.

Platts will amend these guidelines to reflect demurrage rates whereby the buyer's exposure to demurrage should not exceed the lesser of either the normal associated demurrage for a vessel size commensurate to the traded volume, or the charterparty for the actual nominated vessel.

Commensurate demurrage rates for part-cargo volumes should be based on prevailing market rates.

Platts will no longer expect part-cargo demurrage rates to be calculated on a pro-rata basis.

This decision follows a proposal published on April 5, 2017. The subscriber note is available here: https://platts.com/subscriber-notes-details/26704184.

Please send all comments to europe_products@spglobal.com with a cc to 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.