Platts launches weighted average Kamsarmax TCE index

S&P Global Platts has begun publishing a new daily weighted average Kamsarmax time charter equivalent (TCE) index, named KMAX 9, basis 0.5% sulfur bunker fuel and scrubber fitted ships, reflecting ton-mile demand on nine key TCE assessments from May 4, 2020.

Platts first published the subscriber note to launch the assessments on March 17. http://plts.co/bfYp30qCU7B

The Kamsarmax market currently lacks a weighted average TCE index based on trade flow volume. Capturing the movement of widely consumed commodities such as grains, coal, iron ore and bauxite will help represent the spot market accurately.

The KMAX 9 index assessment for the 81,000 dwt Kamsarmax class vessel is derived by applying an allocated weighting to the daily Panamax TCE assessments of six key round voyages published at the 5:30 pm (0930 GMT) Singapore close and three key round voyages published at the 4:30 pm (1630 GMT) London close.

The index assessment will not be published on days when either Singapore or London, or both locations are out on a public holiday.

Weighting for the individual TCE assessments was determined by the volume of Kamsarmax vessel movements observed between the regions associated with the respective voyages over the last three years from Platts trade flow software cFlow. It is calculated in ton-miles.

Ton-mile demand is calculated by multiplying the volume of cargo moved in metric tons by distance traveled in miles.

The weighting for the average TCE assessment is as follows, based on flows observed over January 1, 2017 to December 31, 2019:

The KMAX 9 TCE index appears in Platts Dry Freight Wire and on Shipping Alert pages 2614, 0612, 2615 and 0613 under the following price database codes:

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