Platts proposes to launch Ultramax TCE assessments for 3 Asia Pacific routes Nov 1

S&P Global Platts proposes to launch time charter equivalent (TCE) assessments for Ultramax class dry bulk ships on three routes Australia to Vietnam, Indonesia to China and Persian Gulf to India -- effective Nov. 1, 2021, to reflect growing thermal coal exports from Australia and Indonesia and increasing limestone shipments from the Persian Gulf on the respective routes.

The proposed TCE assessments would reflect the gross daily revenue of Ultramax vessels operating on these routes. They would be published in US dollars/day and would be derived from the respective Supramax voyage rates published by Platts on a $/mt basis.

Ultramax and Supramax vessels typically compete for similar sized stems as both vessel classes reflect geared and grabbed ships, and Platts understands there is increasing interest to utilize Ultramax vessels, compared with Supramax vessels in the dry bulk freight market, given the larger cargo carrying capacity and lower fuel consumption.

By the end of 2021, Platts Analytics expects 1,177 Ultramax vessels to be on the water as compared to just 444 vessels in 2015. A further 96 Ultramax vessels are currently in the order book to be delivered over the next three years. By comparison, there are currently 2,088 Supramax vessels on water, with only 28 more of these in the order book to be delivered in the next three years, according to Platts Analytics.

The proposed TCE assessments would be calculated using bunker prices published by Platts.

With the introduction of new sulfur limits in marine fuel by the International Maritime Organization from Jan. 1, 2020, Platts is proposing to publish two sets of TCEs for each route: one for scrubber-fitted vessels reflecting the use of 3.5% marine bunker fuel, and one for non-scrubber fitted vessels reflecting the use of 0.5% marine bunker fuel.

The port charges, vessel speed, and bunker fuel consumption used in the TCE calculations are arrived at by extensive market survey and reflect market practice.

The proposed new assessments are:

Ultramax TCEs basis bunker fuel 0.5%

Ultramax TCEs basis bunker fuel 3.5%

The proposed new prices would be assessed basis the Asia market close at 5:30 pm Singapore time (0930 GMT), and would follow the Singapore publishing schedule.

Please send all comments or questions by Sept. 17, 2021 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.