Clarification of USGC waterborne methodology

Effective immediately, the USGC waterborne methodology has been clarified to the following: Waterborne barrels represent light ends (gasoline, distillates) loading out of the defined locations below for shipment to another US port or exported outside of the US.

On September 1, 2009, Platts expanded the geographical loading points for its USGC light ends waterborne assessments to reflect Beaumont/Port Arthur, Lake Charles and the greater Houston area (Texas City, Deer Park, Pasadena, Houston, etc.) Other loading points such as New Orleans, Baton Rouge, Corpus Christi and Pascagoula may be considered, but this market information can be normalized back to Platts stated three main USGC ports.

Platts understands that some issues, such as dock congestion or a lack of available product at a given loading point does not necessarily mean the entire USGC is similarly affected.

This market is FOB. The most open and representative bid will simply be for gasoline/distillates at the generic USGC loading point. Bids that request individual loading points may be view as restrictive and subject to normalization. Typically, the seller will nominate the terminal and port in the USGC area and inform the buyer within five days of the first day of the 3-day laycan. The buyer will then nominate the vessel and the loading dates within the 3-day laycan, pending terminal acceptance.