Platts launches fallback demurrage mechanism for WTI Midland CIF Rotterdam cargoes basis USGC demurrage rates

Platts, part of S&P Global Commodity Insights, has launched a demurrage fallback mechanism for WTI Midland CIF Rotterdam cargoes traded in the Platts Market on Close assessment process that is based on US Gulf Coast (USGC) demurrage rates, effective June 23.

If no agreement can be reached between buyer and seller on demurrage costs, Platts proposes that counterparties use Platts Aframax USGC demurrage assessment (ADERD00) for the period 22-27 days prior to the delivery laycan. This time period is equivalent to what Platts understands the typical USGC Aframax fixing period to be of 5-10 days prior to USGC loading, assuming a 17-day sailing time to Rotterdam.

Platts understands that currently the standard market practice for demurrage on WTI Midland cargoes to be commensurate with Aframax demurrage rates in the US Gulf Coast.

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