Platts launches Yearly, Dynamic Base rates using LNG bunkers for tanker freight assessments

Platts, part of S&P Global Commodity Insights, has launched a full suite of Yearly and Dynamic Base Rates from Oct. 16 basis LNG bunker fuel. These base rates are a standardized estimate of the cost of moving a tanker consuming LNG as bunker fuel for all assessed freight routes, with the exception of lump sum routes.

The calculation of the Base Rate has one established assumption, which is to list all the possible costs for the entire voyage and divide it by the deadweight tonnage of the standard vessel to arrive at the $/mt Base Rate, which equates to 100 points on the scale.

On May 15, Platts had launched Yearly and Dynamic Base Rates basis conventional bunker fuel along with a limited number of LNG bunker-based Yearly Base Rates.

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/051523-platts-launches-yearly-dynamic-base-rates-for-tanker-freight-assessments

Platts Base Rates using LNG bunker fuel can be applied to calculate tanker freight rates basis points and dollars per ton as well as various product netback and net forward assessments, along with crude yield & netback prices.

The 2023 Yearly Base Rates using LNG bunker fuel are calculated using the average bunker price basis LNG Bunker Fuel Singapore and LNG Bunker Fuel Rotterdam basis LNG factor at $1,734.44/mt and $1,966.05/mt, respectively, for the period starting Oct. 1, 2021, to Nov. 30, 2022.

The Dynamic Base Rates are calculated using daily LNG Bunker Fuel Singapore (Symbol code -LNBSF00) and LNG Bunker Fuel Rotterdam (LNBRF00).

Platts also launched Port Disbursement Account or charges basis Aframax class tankers for ports that are used in the calculation of base rates.

https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/downloads/port_charges_symbols.xlsx

The cost to the shipowner includes fuel expenses, port costs, agency fees and any other miscellaneous costs which are specific to the port and are well known. Costs which are not known and not taken into account will come under Additional Costs. Owners and charterers need to have specific clauses in the Charter Party agreement to cover those costs.

Platts Base Rates consider an Aframax-class vessel basis 105,000 deadweight tonnage; vessel speed basis laden at 13 knots, ballast at 12 knots; laden fuel consumption at 30 mt/day, ballast fuel consumption at 26 mt/day; fuel consumption while working at 32.5 mt/day; idling fuel consumption at 5 mt/day; load port days at two days; discharge port days at two days; fuel grade -- LNG Bunker Fuel.

The Yearly Base Rates, published annually, will change in the event of a concerned port changing its Port Disbursement Account or charges. Any proposal to change Base Rates will be communicated to the market through subscriber notes in advance.

https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/downloads/base_rate_symbols.xlsx

Platts Dynamic Base Rates for routes originating in the West of Suez region will follow the London holiday calendar and for routes originating in the East of Suez will follow the Singapore holiday calendar https://www.spglobal.com/commodityinsights/en/our-methodology/holiday.

Please send all comments or questions to shipping@spglobal.com and pricegroup@spglobal.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 make comments not marked as confidential available to the public upon request.