Platts to expand port basis of FOB Rotterdam Marine Fuel 0.5% Barge assessment

Following evolving market conditions, S&P Global Platts proposes to expand the port basis reflected in its Market on Close assessment process for FOB Rotterdam Marine Fuel 0.5% barges to include Antwerp, effective October 1.

The assessment currently reflects the value of barges loading FOB basis Rotterdam.

Under the current methodology, a seller can nominate any reasonable terminal in the Amsterdam-Rotterdam-Antwerp region for an FOB Rotterdam barge trade reported in the MOC process, and the buyer should not unreasonably refuse this option.

The seller should compensate the buyer for the demonstrable incremental freight cost associated with loading in an alternative port to Rotterdam. The freight differential applied should be mutually agreed by both counterparties involved in the reported trade.

Following market feedback and research, Platts understands that Antwerp is an active and regular location for the loading of 0.5%S marine fuel.

Summary of 0.5% marine fuel barge trades reported through the MOC process between January and June 2020:

Under the proposal, Platts would amend the basis of the assessment to reflect both Rotterdam and Antwerp.

A seller could nominate either Rotterdam or Antwerp for an FOB Rotterdam barge trade reported in the MOC process, and would not incur any additional freight costs for loading compared with loading from Rotterdam, provided that costs do not exceed standard market rates. The seller would notify the buyer of the port of loading in a timeframe as per standard market practice.

A seller could also nominate Amsterdam for an FOB Rotterdam barge trade reported in the MOC process, and the buyer should not unreasonably refuse this option.

The seller should compensate the buyer for the demonstrable incremental freight cost associated with loading in Amsterdam versus Rotterdam/Antwerp. The freight differential applied should be mutually agreed by both counterparties involved in the reported trade.

Platts would not amend the name of the assessment, which would remain FOB Rotterdam Marine Fuel 0.5%.

Platts is requesting feedback on all aspects of this proposal, including the suitability of the new port listed as well as comments on the current list of ports reflected in the assessment process.

The FOB Rotterdam Marine Fuel 0.5% Barge assessment is published in Platts European Marketscan and on Platts Global Alert page 30 and is identified in the Platts price database under the PUMFD00 code.

Please send any feedback by August 10 to Europe_Products@spglobal.com with a CC to 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 upon request.