Platts proposes to amend 3 dry bulk implied freight assessments; launch KMAX-9 derived Panamax dry bulk freight assessment

Platts, part of S&P Global Commodity Insights, proposes to amend three daily dry bulk implied freight assessments, along with the launch of an additional dry bulk Panamax freight assessment implied from the KMAX-9 index.

The proposal refers to three daily dry bulk freight assessments that were launched in 2023 and are currently derived from the KMAX-9 index. Platts proposes that, for the subject assessments, vessel size would change from Panamax to Supramax, cargo size would be adjusted from 60,000 mt to 50,000 mt for wheat shipments to Indonesia, while the implied freight rates would be derived from Platts GSP 11 index instead of the existing KMAX-9 index.

The GSP 11 index is a daily weighted average Supramax time-charter equivalent (TCE) index reflecting ton-mile demand on 11 key TCE assessments. The GSP 11 index for the 57,000-dwt Supramax class vessel is derived by applying an allocated weighting to the daily Supramax TCE assessments of 11 key voyages published at the London close.

The freight element of the calculation for the three proposed implied freight assessments would be based on the daily value of the GSP 11 index, while costs and expenses specific to each route would reflect standard market practice.

Platts' calculations would include port charges, loading and discharge rates, vessel speed, fuel consumption and other relevant expenses specific to each route, following a robust survey of market participants.

The assessments would follow the GSP 11 publication schedule and would not be published when either Singapore or London, or both locations, are out on a public holiday.

The three routes would be revised as below, with the following time-charter trip assumptions:

Simultaneously, Platts also proposes to launch an additional dry bulk Panamax freight assessment for 60,000 mt wheat shipments from Chornomorsk, Ukraine to Cigading, Indonesia, with implied freight rates derived from the Platts KMAX-9 Index.

The KMAX-9 index is a daily weighted average Kamsarmax TCE index reflecting ton-mile demand on nine key TCE assessments. The KMAX-9 index for the 81,000 dwt Kamsarmax class vessel is derived by applying an allocated weighting to the daily Panamax TCE assessments of nine key voyages published at the Singapore close and three key voyages published at the London close.

The freight element of the calculation for the proposed implied freight assessment would be based on the daily value of the KMAX-9 index, while costs and expenses specific to each route would reflect standard market practice.

Platts' calculations would include port charges, loading and discharge rates, vessel speed, fuel consumption and other relevant expenses specific to each route, following a robust survey of market participants.

The additional route would be based on the following time-charter trip assumptions:

The assessment would be published in US $/mt and reflect a lay days-cancelling period of 15-30 days forward.

The assessment would follow the KMAX-9 publication schedule and would not be published on days when either Singapore or London, or both locations, are out on a public holiday.

Below are the loading/discharge rates, port costs, canal transit fees and other key expense assumptions used for the calculation of the implied freight assessments.

Loading and discharge terms are based on a Saturdays, Sundays and Holidays Excluded (SSHEX) schedule assumption with 105 working hours on a given week.

Loading calculations from the Port of Varna, Bulgaria and Chornomorsk, Ukraine include a 12-hour turn time assumption, while transiting the Turkish Straits includes a waiting assumption of two days each way.

Bunkering in Singapore and Istanbul is assumed to add one day in the relevant voyages, while waiting to transit the Suez Canal also introduces an additional day in the Varna-to-Cigading and Chornomorsk-to-Cigading implied freight assessment calculations.

Platts will seek to periodically review and update the port charges, loading and discharge rates, vessel speed, fuel consumption and other relevant expenses for each route described above.

The assessments are published in US $/mt and reflect a lay days-cancelling period of 15-30 days forward. The implied freight assessments are published in price steps of 25 cents.

Platts invites any feedback, comments or questions regarding all aspects of this proposal by June 25 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 will make comments not marked as confidential available to the public upon request.