Platts launches Yearly, Dynamic Base rates for tanker freight assessments

Platts, part of S&P Global Commodity Insights, has launched Yearly and Dynamic Base Rates from May 15, 2023, basis conventional bunker fuel and also LNG bunker fuel. These base rates are a standardized estimate of the cost of moving a tanker for all assessed freight routes, with the exception of lump sum routes.

The calculation of the Base Rate has one established assumption, which is to list all the possible costs for the entire voyage and divide it by the deadweight tonnage of the standard vessel to arrive at the $/mt Base Rate, which equates to 100 points on the scale.

Platts Base Rates can be applied to calculate tanker freight rates basis points and dollars per ton as well as various product netback and net forward assessments, along with crude yield & netback prices.

The 2023 Yearly Base Rates are calculated using the average bunker price basis Singapore Marine fuel 0.5% bunker ($792.22/mt), Rotterdam Marine Fuel 0.5% bunker ($725.92/mt) and Rotterdam Low Sulfur 0.1% ($989.94/mt) for the period starting Oct. 1, 2021, to Nov. 30, 2022. The Yearly LNG-bunker fuel linked Base Rates are calculated using LNG Bunker Fuel Singapore and LNG Bunker Fuel Rotterdam basis LNG factor at $1,734.44/mt and $1,966.05/mt, respectively, for the period starting Oct. 1, 2021, to Nov. 30, 2022.

The Dynamic Base Rates are calculated using daily Singapore Marine fuel 0.5% bunker (Symbol code - MFSPD00), Rotterdam Marine Fuel 0.5% bunker (MFRD00) and Rotterdam Low Sulfur 0.1% (AARBF00) prices.

Platts also launched Port Disbursement Account or charges basis Aframax class tankers for ports that are used in the calculation of base rates.

https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/downloads/port_charges_symbols.xlsx

The cost to the shipowner includes fuel expenses, port costs, agency fees and any other miscellaneous costs which are specific to the port and are well known. Costs which are not known and not taken into account will come under Additional Costs. Owners and charterers need to have specific clauses in the Charter Party agreement to cover those costs.

Platts Base Rates consider an Aframax-class vessel basis 105,000 deadweight tonnage; vessel speed basis laden at 13 knots, ballast at 12 knots; laden fuel consumption at 43 mt/day, ballast fuel consumption at 36 mt/day; fuel consumption while working at 32.5 mt/day; idling fuel consumption at 5 mt/day; load port days at two days; discharge port days at two days; fuel grades 0.5% Sulfur Marine bunker fuel, 0.1% Low Sulfur bunker fuel.

The Yearly Base Rates, published annually, will change in the event of a concerned port changing its Port Disbursement Account or charges. Any proposal to change Base Rates will be communicated to the market through subscriber notes in advance.

https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/downloads/base_rate_symbols.xlsx

Platts Dynamic Base Rates for routes originating in the West of Suez region will follow the London holiday calendar and for routes originating in the East of Suez will follow the Singapore holiday calendar https://www.spglobal.com/commodityinsights/en/our-methodology/holiday.

Please send all comments or questions to shipping@spglobal.com and 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 make comments not marked as confidential available to the public upon request.