SUBSCRIBER NOTE: Platts to update US fuel oil barge nomination standards Sep 18

S&P Global Platts editorial standards for the Platts Market On Close assessment process for US fuel oil barge assessments calls for best practices in all aspects of operational performance, including terminal and vessel nominations.

Platts has decided to amend the nomination guidelines for FOB US fuel oil barge transactions, as well as detail nomination guidelines for CIF US fuel oil barge transactions during the MOC process, effective September 18, 2017, as part of an ongoing review of typical market practices.

This was initially proposed in a subscriber note published August 10, 2017: https://platts.com/subscriber-notes-details/21597652. Platts had initially proposed to implement this on September 1, 2017.

NOMINATIONS FOR FOB TRANSACTIONS: For FOB US fuel oil barge transactions, the seller should provide the Certificate of Analysis to the buyer at the latest on the calendar day prior to the first day of the laycan.

The buyer should nominate the lifting date within the three-day laycan, as well as the performing vessel, at least one calendar day prior to the lifting date, subject to terminal acceptance.

This would be a change from prevailing standards on FOB US Gulf Coast fuel oil assessments, published in a subscriber note on March 1, 2011, which states that the buyer should nominate the lifting date or dates within that laycan at least 48 hours prior to the first day of the laycan, and that the seller should provide specification details to the buyer at least 24 hours prior to the lifting date nominated by the buyer.

In line with prevailing stated standards, the seller in an FOB transaction should nominate the terminal within the specified port to the buyer at least 72 hours prior to the first day of the laycan.

NOMINATIONS FOR CIF TRANSACTIONS: For CIF fuel oil transactions, the buyer should nominate the port with the specific terminal to the seller at least five calendar days prior to the first day of the delivery date range.

The seller should nominate the delivery date and performing vessel at least three calendar days prior to the first day of the delivery date range.

All nominations for both FOB and CIF US fuel oil barge transactions should typically be communicated to counterparties by 5 pm CT/6 pm ET.

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