Platts proposes to launch FOB ARA ULSD cargo assessment Sep 29

Platts, part of S&P Global Commodity Insights, is proposing to launch a new standalone FOB ARA ULSD cargo assessment, effective Sept. 29.

Market feedback has indicated the need for greater transparency for the value of ultra-low sulfur diesel loading on an FOB basis from the Amsterdam-Rotterdam-Antwerp hub to supply demand centers across Northwest Europe. Platts has observed increased loadings of diesel cargoes on smaller coaster-size ships from ARA, following the ban on Russian diesel imports into the EU and UK, which has led to more barrels delivered on LRs from East of Suez breaking bulk in ARA.

The proposed assessment would reflect parcels of 15,000-mt cargoes of EN590 French quality diesel fuel, which Platts has observed to be the most typical volume size used to supply into the UK on a coaster ship, however, cargoes ranging between 10,000 mt and 30,000 mt may be published and considered in the assessment process with value normalized to a basis size of 15,000 mt. Bids, offers and trades for other 10 ppm diesel grades, such as those conforming to UK or German specifications, may be considered in the assessment process but normalized to the basis specification.

The proposed FOB ARA assessment would reflect the value of diesel loading 7-20 days forward from the date of publication, with values normalized to reflect the mean of the loading period.

The proposed assessment would reflect loadings from the ARA hub. Offers from the individual ports of Amsterdam, Rotterdam or Antwerp may be considered for publication.

Platts is seeking feedback on prevailing standards regarding ship nomination timelines and guidelines, and typical operational tolerance volumes of 10,000-30,000 mt cargoes for loadings from ARA.

Please send any comments or feedback by Aug. 21 to europe_products@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.