Platts to launch implied Supramax sugar freight rate from Brazil to Indonesia on Sept 1

S&P Global Platts will 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 Sept. 1, 2021.

The Supramax daily derived freight rate assessment will 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 will be based on modern Supramax tonnage.

The 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 Marine Fuel 0.5% 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 assessment will 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 Platts Analytics.

The freight rates will reflect the transactable value at the London market close of 16:30 London time, and will follow the London publishing schedule.

Please send any further comments or questions 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 upon request.