SUBSCRIBER NOTE: Platts proposes new Asia dirty tanker assessments

Reflecting growth in the supply and trading of fuel oil along new routes in the East of Suez tanker markets, Platts proposes to launch three new assessments for the value of dirty Medium Range or MR tanker freight. The new assessments -- East Coast India to Singapore; Singapore to Chittagong; and Singapore to Japan -- would reflect strong market interest in dirty Medium Range tankers, with almost 70 dirty MR tankers currently seen trading each month in Asia. The new assessments would reflect modern MR tonnage. Platts proposes to launch the assessments with effect from July 1, 2014. Each assessment would be published on a lump-sum basis and expressed as US dollars per voyage. The lump-sum assessments would also be published in dollars per metric ton, which will be calculated by dividing the primary lump-sum assessments by the cargo size reflected in the assessment. EAST COAST INDIA TO SINGAPORE: This assessment would reflect a 40,000-mt dirty MR tanker from East Coast India to Singapore, and reflect increased exports of fuel oil from the East Coast of India, following the startup of new refineries at the coastal towns of Paradip and Cuddalore. The assessment would reflect loadings from Chennai, Vishakapatnam (also known as Vizag), Haldia and Paradip and discharge into Singapore as the discharge basis port. Fixtures to Tanjung Pelepas, Malacca, Karimun and Pasir Gudang would be considered in the assessment and normalized to a Singapore basis. SINGAPORE TO CHITTAGONG: This assessment would reflect a 30,000-mt dirty MR tanker from Singapore to Bangladesh's port of Chittagong, reflecting increased exports of fuel oil from Singapore to Bangladesh -- which is expected to import 1.44 million-1.5 million mt of fuel oil annually for its 35 oil-fired power plants. The assessment would reflect a load port of Singapore. Related load ports such as Tanjung Pelapas, Pasir Gudang and Karimun would be reflected in the assessment, normalized to a Singapore basis. The assessment would reflect discharge into Chittagong.

SINGAPORE TO JAPAN: This assessment would reflect 40,000-mt MR tanker freight rates from Singapore to Japan, reflecting steady exports of fuel oil from Singapore as Japanese power plants continue to burn more fuel oil following the March 2011 earthquake. Close to 500,000 mt of fuel oil moves from the region to Japan. The assessment would reflect a load port of Singapore. Related load ports such as Tanjung Pelapas, Pasir Gudang and Karimun would be reflected in the assessment, normalized to a Singapore basis. The assessment would reflect discharge into the port of Chiba in Japan. Fixtures to other related ports such as Shimotsu, Kashima, Kanokawa, Sakai, Owase, Tomokomai and Muroran would be normalized to a Chiba basis.

These new assessments would be published in Platts Dirty Tankerwire and Platts Global Alert pages 2970. Please send all comments or questions by June 6, 2014 to tankers@platts.com and pricegroup@platts.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.