SUBSCRIBER NOTE: Platts proposes ending N. America, Panama LS 1% bunker assessments

Platts proposes to end its North America and Panama 1% sulfur bunker fuel assessments with effect from November 16, 2015.

Platts assesses 1%S, or low-sulfur, bunker fuel on a delivered and ex-wharf bases in Houston, New Orleans, New York, Philadelphia, Savannah, Charleston, Norfolk, Montreal, Vancouver, Seattle, Portland, San Francisco and Los Angeles in North America, and in the Panamanian ports of Balboa and Cristobal. The assessments to be discontinued include IFO 380 and IFO 180 qualities.

Since January 1, 2015, ships operating in the Emissions Control Area within 200 nautical miles of North American shores must use bunker fuel with a maximum sulfur content of 0.1%, down from 1%, according to International Maritime Organization rules. The maritime industry's shift away from 1%S bunker fuel consumption has effectively ended virtually all demand for the product, and as a result it is no longer offered for sale on a typical basis in any of the region's ports, meaning there is no longer an observable market on which Platts can base its assessments. Although some companies have waivers to use non-Emission Control Area-compliant fuels, the fuels being consumed typically have sulfur contents between 2%-3.3%, according to the US Coast Guard and US Environmental Protection Agency, which collectively enforce the IMO regulations in North America.

Platts will continue to publish assessments for 0.1%S marine gasoil, or MGO, for all its existing American ports, alongside ultra-low sulfur, 0.1% bunker fuel assessments in New York and Houston.

For a complete list of all affected assessments and their PGA codes, please see the table below:

ASSESSMENT CODE PGA PAGE MONTH CODE IFO 380 CST delivered New York LS 1% AAWSS00 MH860 AAWSS03 Philadelphia LS 1% AAWSW00 MH860 AAWSW03 Norfolk LS 1% AAWSO00 MH860 AAWSO03 Charleston LS 1% AAWLK00 MH860 AAWLK03 Houston LS 1% AAWLO00 MH860 AAWLO03 New Orleans LS 1% AAWRY00 MH860 AAWRY03 Los Angeles LS 1% AAWLS00 MH860 AAWLS03 San Francisco LS 1% AAWTE00 MH860 AAWTE03 Portland LS 1% AAWTA00 MH860 AAWTA03 Seattle LS 1% AAWTK00 MH860 AAWTK03 Montreal LS 1% AAWQI00 MH860 AAWQI03 Vancouver LS 1% AAWTO00 MH860 AAWTO03

IFO 180 CST delivered New York LS 1% AAWSQ00 MH860 AAWSQ03 Philadelphia LS 1% AAWSU00 MH860 AAWSU03 Norfolk LS 1% AAWSM00 MH860 AAWSM03 Charleston LS 1% AAWLI00 MH860 AAWLI03 Houston LS 1% AAWLM00 MH860 AAWLM03 New Orleans LS 1% AAWQO00 MH860 AAWQO03 Los Angeles LS 1% AAWLQ00 MH860 AAWLQ03 San Francisco LS 1% AAWTC00 MH860 AAWTC03 Portland LS 1% AAWSY00 MH860 AAWSY03 Seattle LS 1% AAWTI00 MH860 AAWTI03 Montreal LS 1% AAWLX00 MH860 AAWLX03 Vancouver LS 1% AAWTM00 MH860 AAWTM03

IFO 380 CST bunker ex-wharf New York LS 1% AAWST00 MH862 AAWST03 Philadelphia LS 1% AAWSX00 MH862 AAWSX03 Norfolk LS 1% AAWSP00 MH862 AAWSP03 Charleston LS 1% AAWLL00 MH862 AAWLL03 Savannah LS 1% AAWTH00 MH862 AAWTH03 Houston LS 1% AAWLP00 MH862 AAWLP03 New Orleans LS 1% AAWRZ00 MH862 AAWRZ03 Los Angeles LS 1% AAWLT00 MH862 AAWLT03 San Francisco LS 1% AAWTF00 MH862 AAWTF03 Portland LS 1% AAWTB00 MH862 AAWTB03 Seattle LS 1% AAWTL00 MH862 AAWTL03 Montreal LS 1% AAWQJ00 MH862 AAWQJ03 Vancouver LS 1% AAWTP00 MH862 AAWTP03 Balboa LS 1% AAWWQ00 MH870 AAWWQ03 Cristobal LS 1% AAWWO00 MH870 AAWWO03

IFO 180 CST bunker ex-wharf New York LS 1% AAWSR00 MH862 AAWSR03 Philadelphia LS 1% AAWSV00 MH862 AAWSV03 Norfolk LS 1% AAWSN00 MH862 AAWSN03 Charleston LS 1% AAWLJ00 MH862 AAWLJ03 Savannah LS 1% AAWTG00 MH862 AAWTG03 Houston LS 1% AAWLN00 MH862 AAWLN03 New Orleans LS 1% AAWRX00 MH862 AAWRX03 Los Angeles LS 1% AAWLR00 MH862 AAWLR03 San Francisco LS 1% AAWTD00 MH862 AAWTD03 Portland LS 1% AAWSZ00 MH862 AAWSZ03 Seattle LS 1% AAWTJ00 MH862 AAWTJ03 Montreal LS 1% AAWQH00 MH862 AAWQH03 Vancouver LS 1% AAWTN00 MH862 AAWTN03 Balboa LS 1% AAWWP00 MH870 AAWWP03 Cristobal LS 1% AAWWN00 MH870 AAWWN03

Please send any further comments or questions by June 19 to americas_bunkers@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.