SUBSCRIBER NOTE: Platts amends 2018 freight netbacks for FOB Med ULSD, GO, FOB Black Sea VGO cargo assessments

Effective October 1, 2018, S&P Global Platts will amend the Worldscale rates used to calculate the freight netbacks for its FOB Mediterranean 0.1% gasoil assessment, FOB Med ULSD 10ppm Cargo assessment, and its FOB Black Sea LSVGO and HSVGO assessments.

This amendment follows the release of Worldscale Association circular number 13 on September 4, 2018, which revises the $/mt flat rates for all cargoes transiting the Bosporus Strait.

Worldscale Association stated that it was revising the flat rates "in light of recent information regarding the introduction of new Escort Towage requirements for vessels transiting the Bosporus Strait."

In light of the changes highlighted in the circular, Platts is revising its annual WS flat rates for the following assessments and voyages:

The flat rate used to calculate the netback formulas for FOB Mediterranean 0.1% gasoil cargoes (assessment code: AAVJI00) becomes $7.56/mt, effective October 1, 2018.

The new flat rate takes into account the 16 cents/mt increase applicable to voyages transiting through the Bosporus Strait.

The published Novorossiisk-Genoa and Novorossiisk-Lavera as well as the Batumi-Genoa and Batumi-Lavera routes included in the basket of rates are affected. The remaining routes -- Malta-Genoa and Malta-Lavera -- remain unaffected.

The flat rate used to calculate the netback formulas for FOB Mediterranean ULSD 10ppm Cargo (Code: AAWYY00) becomes $6.70/mt.

The Batumi-Genoa and Batumi-Lavera routes included in the basket of rates are affected. The remaining routes -- Santa Panagia-Genoa, Santa Panagia-Lavera, Aliaga-Genoa, Aliaga-Lavera, Agioi Theodoroi-Genoa, Agioi Theodoroi-Lavera -- remain unaffected.

The flat rate used to calculate the netback formulas for FOB Black Sea VGO cargoes (assessment codes: ABBAD00 and ABBAC00) as a freight netback from CIF Mediterranean cargoes becomes $5.90/mt, effective October 1, 2018.

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