Platts proposes to launch Brazil-UK Continent, Brazil-Mediterranean Suezmax freight assessments

Platts, part of S&P Global Commodity Insights, proposes to launch two Suezmax 130,000 mt Brazil-UK Continent and Brazil-Mediterranean assessments, effective Nov. 1, 2022, to reflect the growing crude flow on these routes on Suezmax tankers.

Brazilian crude exports to Europe have been increasing in recent years, as flows to China have declined amid reduced domestic demand. Demand for low sulfur Brazilian crudes have also increased following IMO 2020 regulations as well as changing trade flows following the Russia-Ukraine conflict.

Total crude exports from Brazil to Europe rose 30% to 3.9 million mt in 2021, compared with 2019, data from Platts cFlow ship and commodity tracking software from S&P Global Commodity Insights showed. During the same period, Brazilian crude exports to Europe on Suezmax tankers surged 162% to 3.5 million mt in 2021. Crude exports on Suezmax tankers on these routes are continuing to grow, hitting 2.2 million mt during the January-July 2022 period.

The proposed assessments would be published on a Worldscale basis and be expressed as Worldscale points. Platts would also publish the equivalent US dollar per metric ton value for these assessments.

The proposed assessments are:

Suezmax Brazil to UK Continent 130,000 mt: This assessment would reflect the cost of chartering a Suezmax tanker carrying a cargo of 130,000 mt from Brazil to the UK Continent, for loading 7-25 days forward. The assessment would reflect loadings from Angra dos Reis, Porto Acu and Santos, and discharge at Rotterdam and Sines.

Suezmax Brazil to Mediterranean 130,000 mt: This assessment would reflect the cost of chartering a Suezmax tanker carrying a cargo of 130,000 mt from Brazil to the Mediterranean, for loading 7-25 days forward. The assessment would reflect loadings from Angra dos Reis and Porto Acu, and discharge at Augusta, Algeciras, and Ashkelon.

Please send any feedback, comments or questions by Sept. 23, 2022 to shipping@spglobal.com and pricegroup@spglobal.com.

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