Platts amends methodology for Capesize, Panamax scrubber premium indexes Oct 1

Platts, part of S&P Global Commodity Insights, has amended 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.

Previously, both PCSI and PPSI indexes were 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 suggested that scrubber premium indexes should reflect the difference between the individual weighted average indexes.

Platts has changed the methodology for PCSI assessment by considering the difference between the Cape T4S Index (CAPT400, basis scrubber-fitted) and the Cape T4 Index (ACAZA00, basis bunker fuel 0.5%) for the Capesize segment. In the case of the Panamax sector, PPSI is assessed on a basis of the difference between the KMAX 9S Index (AKMIB00, basis scrubber-fitted) and the 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 better reflect the earning differential for scrubber-fitted ships.

The affected assessments are as follows:

The PCSI assessment follows the 5:30 pm (0930 GMT) Singapore timestamp, while the PPSI assessment follows the 4:30 pm (1630 GMT) London close. PCSI will not be published on days when Singapore observes a public holiday, while PPSI will not be available when Singapore or London or both locations observe a national holiday.

Both PCSI and PPSI indexes 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.

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