Platts to amend daily Panamax bunker consumption variable for Time Charter Equivalent calculations from June 1

Following an extensive market survey, Platts, part of S&P Global Commodity Insights, will amend the daily bunker consumption variable for Panamax dry bulk Time Charter Equivalent calculations from June 1, decreasing the vessel consumption at sea and increasing the vessel consumption in port.

Platts Time Charter Equivalent (TCE) rates reflect the net daily revenue of vessels operating on key dry bulk routes across the globe in $/day and are calculated values based on Platts dry bulk freight assessments, which reflect the transactable value of chartering a vessel in $/mt. They are available in the Platts pricing database and the Dry Freight Wire.

The Panamax vessel specification underpinning Platts dry bulk freight assessments is a dry bulk carrier with a typical size of 76,000-82,000 dwt, up to 20 years of age, a draft of 14.25 meters, and a length overall of 229 meters. For all TCE calculations, Platts uses a Panamax vessel of 81,000 dwt.

Platts will amend the daily bunker consumption value used in the calculation of the Panamax TCE, following an extensive market survey. The change comes on the back of strong evidence of improved fleet efficiency resulting in lower bunker consumption for trading vessels in the Panamax/Kamsarmax segment.

Additionally, slower steaming speeds in response to existing and incoming marine emissions regulations are also expected to contribute to a declining daily bunker consumption value for Panamax/Kamsarmax vessels.

Meanwhile, Platts will amend the daily bunker consumption of Panamax vessels while in port, noting that intra-segment dynamics for the Panamax/Kamsarmax market have been favoring vessels with larger displacement, leading to higher consumption whilst in port.

The current Panamax daily bunker consumption values (mt/day) are:

The new Panamax daily bunker consumption values (mt/day) are:

The assessments expected to be impacted by the methodology change include:

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