SUBSCRIBER NOTE: Platts to change USGC naphtha basis to DES from CIF

Following industry feedback, Platts proposes to amend the contract basis reflected in some of its US Gulf Coast naphtha assessments to delivered ex-ship, or DES, from the current cost, insurance and freight, or CIF, starting January 2, 2017. The proposal follows initial feedback from participants in the Gulf Coast naphtha market that most trade of these products is conducted on a DES basis rather than CIF.

The affected assessments are:

Assessment Code Monthly average Heavy naphtha barge AALPI00 AALPJ00 Heavy naphtha barge AASHD00 AASHD03 vs USGC waterborne Standard naphtha barge AALPG00 AALPG03 Standard naphtha barge AASGZ00 AASGZ03 vs USGC waterborne

Under DES agreements, title for a given product passes to the buyer at the point of discharge at the port of destination. Under CIF terms, title passes at the point of loading at the port of origination.

Platts invites feedback by December 9, 2016. For questions or comments, please email americas_products@platts.com, with a cc to pricegroup@platts.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.