Platts to change fixed calculation for 100kt Baltic-UKC dirty tanker freight assessment

Platts, part of S&P Global Commodity Insights, will change the basis of the fixed calculation that generates its Baltic-UKC 100kt dirty tanker freight assessment following market feedback.

Effective Aug. 1, Platts will assess its Baltic-UKC 100kt dirty tanker freight assessment at a fixed Worldscale premium of 50 points to its 100 kt Baltic-Mediterranean assessment published under the code DBLMA00.

Platts first proposed the change to the assessment methodology for its 100kt Baltic-UKC dirty tanker freight assessment in a subscriber note published May 9, after seeking market feedback: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/031423-platts-seeks-feedback-on-its-100-kt-baltic-ukc-dirty-tanker-freight-assessment

Platts has observed increased complexity on this trade route following the EU sanctions imposed on Russian crude Dec. 5. In a subscriber note published Dec. 1, Platts specified a change in its methodology for its 100kt Baltic-UKC dirty tanker freight assessment.

The rate is currently assessed using a fixed differential to its 80kt UKC-UKC dirty tanker assessment, after the underlying flow of Russian crude and fuel oil into Europe ceased due to sanctions: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/120122-platts-changes-flat-rate-basket-for-140-kt-black-sea-med-100-kt-baltic-med-tanker-assessments-to-calculate-100-kt-baltic-

Platts understands that Aframax tankers carrying Russian-origin crude or fuel oil to non-EU Mediterranean discharge ports earn a significant premium over tankers carrying North Sea crude grades into UK/EU ports. Platts also understands that a shipowner would require a further premium to end a journey on the coast of Northwest Europe as the ship would be unable to discharge a cargo at a Member State port. The ship may also be required to reposition at the owner's expense to load any subsequent cargoes and could be the target of sanctions or penalties.

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