SUBSCRIBER NOTE: Platts amends CIF NWE naphtha part-cargo demurrage guidelines

After extensive feedback and in line with a decision published on May 4, 2017, S&P Global Platts has revised the guidelines reflected in its methodology for CIF NWE naphtha part-cargo demurrage costs effective June 1, 2017.

This decision follows a proposal published on April 5, 2017 and a subsequent note published on May 4, 2017. The subscriber note is available here: https://www.platts.com/subscriber-notes-details/21633410.

Platts seeks to ensure that neither the buyer nor the seller should be disadvantaged by the seller's decision not to deliver a full cargo.

Platts has amended these guidelines to reflect demurrage rates whereby the buyer's exposure to demurrage should not exceed the lesser of either the normal associated demurrage for a vessel size commensurate to the traded volume, or the charterparty for the actual nominated vessel.

Commensurate demurrage rates for part-cargo volumes should be based on prevailing market rates.

Previously the methodology reflected deals in which the demurrage rate paid by the buyer was on a pro-rata basis to normal destinations in NWE.

Platts no longer expects part-cargo demurrage rates to be calculated on a pro-rata basis.

Please send all comments to europe_products@spglobal.com with a cc to pricegroup@spglobal.com.

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