Platts to launch carbon-accounted Aframax tanker assessments on 4 European routes Aug 1

Platts, part of S&P Global Commodity Insights, will launch daily carbon-accounted Aframax dirty tanker freight assessments on four key routes in Europe, effective Aug. 1, 2022, to provide further transparency into this developing market.

These new assessments will reflect the cost to move crude oil or fuel oil on an Aframax tanker on each route, including the additional cost required to offset 100% of the carbon dioxide emissions created through the combustion and exhaust of a ship's marine fuel through the European Union's Emissions Trading System (ETS).

These assessments add to the suite of freight carbon intensity values and freight carbon intensity premiums Platts has already been publishing since October 2021, which measure the impact of greenhouse gas emissions to transport various crude grades from production storage terminals to typical refinery locations around the world.

The new carbon-accounted Aframax freight assessments will be published in Worldscale points as well as in US dollars/mt.

The new assessments are:

Last July, the European Commission proposed adding shipping to the EU ETS gradually from 2023 to 2026, when shipowners would need to buy permits covering all their emissions inside the EU and 50% of their emissions from international voyages beginning and ending in the EU.

The Environmental Committee of the European Parliament voted in May 2022 to delay the inclusion of the shipping sector into the EU ETS from 2023 to 2024, but require that 100% of emissions from intra-EU voyages be covered from the outset, dropping previous plans for a phase-in period between 2023-2026. The latest EU proposals will look to cover 50% of emissions for voyages into and out of the European Economic Area until 2027, and 100% of emissions of these voyages thereafter.

The vessel speed and bunker fuel consumption used in the calculations of the new carbon-accounted freight assessments were arrived at by extensive market survey and reflect market practice. The calculations will use the daily EU Emission Allowance Nearest-December price (EADLP00) as published by Platts. The tank-to-wake carbon emissions based on the fuel consumption will be calculated using the carbon conversion factors published in Annex 1 of Regulation (EU) 2015/757 of the European Parliament and of the Council on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport. These carbon conversion factors, to be published by Platts from Aug. 1, are:

Platts will publish the values defined in the relevant European legislation and will reflect any updates accordingly.

The new assessments will be published in the Platts Dirty Tankerwire; on Platts Global Tanker pages PGT1960 and 1961, Platts Shipping Alert pages 1430 and 1431, as well as in the Platts price database under the codes above.

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

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