Platts proposes to eliminate use of 'hand blends' in trades reported through US MOC process for Marine Fuel 0.5%S

Following a formal consultation, S&P Global Platts proposes to eliminate the use of "hand blends" in trades reported through the US MOC process for Marine Fuel 0.5%S, effective May 2, 2022.

This proposal follows a subscriber note that opened a consultation on all US Gulf and Atlantic Coast Marine Fuel 0.5%S markets that began on Feb. 4, 2021: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/020421-platts-opens-consultation-on-us-marine-fuel-05s-multi-tank-blends

In the initial consultation, Platts sought feedback on the fungibility and frequency of hand blends for similar-sized stems of 0.5%S transactions, and the typical number of tanks employed. Market feedback suggested that it is not common for Marine Fuel 0.5%S to be delivered from multiple tanks for a single transaction and blended on the receiving vessel in the US for barge-sized transactions.

Platts also understands that the stricter sulfur requirements imposed by the IMO 2020 regulations for marine fuel 0.5%S has resulted in trades that are often close to the maximum specifications compared to HSFO, and feedback suggests that hand blends may have a higher likelihood of specification and quality issues.

There are no proposed changes to the use of hand blends on trades reported through the Platts MOC in any of the other US residual fuel markets.

Please send all feedback, comments or questions to americas_products@spglobal.com and pricegroup@spglobal.com by September 17, 2021.

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.