Platts proposes to amend methodology of Cape and Panamax scrubber premium indexes Oct 1

Platts, part of S&P Global Commodity Insights, proposes to amend its methodology for assessing scrubber premium indexes, PCSI for Capesize (ASCRC00) and PPSI for Panamax (ASCRP00), to better reflect the global scrubber premium on Capesize and Panamax ships through a trade-flow weighted basis, effective Oct. 1, 2024.

Currently, both PCSI and PPSI indexes are assessed as a simple average of the difference in time charter equivalent of scrubber-fitted and non-scrubber ships across the routes assessed by Platts for Capesize and Panamax ships, respectively.

Existing market feedback suggests that scrubber premium indexes should reflect the difference between the individual weighted average indexes.

Platts proposes to change the methodology for PCSI assessment by considering the difference between Cape T4S Index (CAPT400, basis scrubber-fitted) and Cape T4 Index (ACAZA00, basis bunker fuel 0.5%) for the Capesize segment. In the case of the Panamax sector, PPSI would be assessed on a basis of the difference between KMAX 9S index (AKMIB00, basis scrubber-fitted) and KMAX 9 Index (AKMIA00, basis bunker fuel 0.5%).

Since the indexes (Cape T4, Cape T4S, KMAX K9 and KMAX 9S) are trade-flow weighted averages, the new scrubber premium indexes would better reflect the earning differential for scrubber-fitted ships.

The assessments follow a 5:30 pm Singapore timestamp and appear in Platts Dry Freight Wire and Dry Freight Wire Monthly.

Please submit any further feedback, comments or questions to PL_Global_Shipping_Editors@spglobal.com and pricegroup@spglobal.com by Aug. 31, 2024.

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.