Platts launches updated daily Panamax bunker consumption variables for Time Charter Equivalent calculations effective June 1

Platts, part of S&P Global Commodity Insights, has launched updated daily bunker consumption variables for the Panamax dry bulk Time Charter Equivalent calculations effective June 1, 2023, decreasing the vessel consumption at sea and increasing the vessel consumption in port.

Platts first proposed these amendments in a subscriber note published April 14, available here.

Platts Time Charter Equivalent (TCE) rates reflect the daily net 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 (m), and a length overall of 229 m. For all TCE calculations, Platts uses a Panamax vessel of 81,000 dwt.

Platts has amended 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 solid 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 has amended 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 previous Panamax daily bunker consumption values (mt/day) were:

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

The assessments impacted by the methodology change include the following:

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