Platts proposes to launch implied Brazil-Indonesia Supramax sugar freight rate

S&P Global Platts is proposing to launch a new implied Supramax freight rate for the transport of sugar from Brazil to Indonesia that will be derived from an existing time charter equivalent (TCE) assessment, effective Aug. 2, 2021.

The proposed Supramax daily derived freight rate assessment would reflect the cost of transporting a 50,000 mt (plus/minus 10%) cargo of sugar from Santos, Brazil, to Cigading, Indonesia, loading 15-30 days forward from the date of the assessment, and would be based on modern Supramax tonnage.

The proposed implied freight rate will be derived from the existing Platts grains Santos, Brazil to Qingdao, China (PS29) Supramax TCE assessment (daily price database code: GSQCB00).

Platts will include 0.5%S marine fuel prices at the relevant bunkering ports, port charges, vessel speed and fuel consumption in the calculation of the implied freight rate from TCE assessments.

Platts will survey market participants to arrive at values for these that reflect standard market practice.

The proposed assessment would be published on a dollar per metric ton basis.

Indonesia is the world's largest importer of raw sugar, and imports from Brazil have been growing in recent years, increasing from 60,000 mt in 2018 to 1.3 million mt in 2020, according to data compiled by S&P Global Platts Analytics.

The proposed freight rates would reflect the transactable value at the 4:30 pm London market close, and would follow the London publishing schedule.

Please send all comments or questions to shipping@spglobal.com and pricegroup@spglobal.com by July 1.

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 upon request.