Platts proposes to launch two Global Suezmax Indexes, 20 Suezmax TCE assessments Dec 2

Platts, part of S&P Global Commodity Insights, proposes to launch a daily Global Suezmax time charter equivalent (TCE) ton-miles weighted index, designated as GSI 10, based on vessels utilizing 0.5% sulfur bunker fuel effective Dec. 2, 2024. Simultaneously, Platts also proposes the launch of an additional daily Global Suezmax TCE ton-miles weighted index, designated as GSI 10S, based on scrubber-fitted vessels, utilizing 3.5%S bunker fuel and eco-class design.

Considering the significant transformations in global seaborne crude oil trade, characterized by the emergence of new production and consumption regions, the Suezmax market currently lacks a comprehensive weighted TCE index that accurately represents trade flow volume.

As the global Suezmax fleet evolves to enhance fuel efficiency, various vessel types, including those with scrubbers and eco-designs, have emerged, leading to differentiated daily returns. To support the proposed launch of the GSI 10 and the GSI 10S, Platts also proposes the launch of two series of 10 calculated TCE Suezmax assessments, with each series catering to non-scrubber and scrubber-fitted eco-vessels respectively. The proposed launch of two series of TCE rates for both non-eco and scrubber-fitted eco-vessels aims to encapsulate the market's upper and lower earnings thresholds, thus providing enhanced clarity regarding TCE earnings across diverse Suezmax categories. The proposed Suezmax TCE assessments and indexes would include the following routes:

The GSI 10 and GSI 10S indexes would not be published on days when any of London, Singapore, Houston, or all three locations are out on a public holiday. The TCE assessments for the routes Escravos-Marseille, Forcados-Rotterdam, Novorossiisk-Trieste, Novorossiisk-Yosu would follow the London schedule and would be published at 4.30 pm (1630 GMT) London close. The TCE assessments for the routes Basrah-Aliaga, Basrah-Galveston, Ras Laffan-Tianjin and Basrah-Rotterdam would follow the Singapore schedule and would be published at 4.30 pm (0830 GMT) Singapore close. The TCE assessments for the routes Corpus Christi-Rotterdam and Corpus Christi-Cartagena would follow the Americas schedule and would be published at the 1.30 pm (1930 GMT) Houston close. The weighting for individual TCE assessments would be determined by the volume of Suezmax vessel movements as observed by data from S&P Global Commodities at Sea, converted to ton-miles. The ton-mile demand estimation is derived from the cargo volume observed during the period 2021-23 between regions in metric tons multiplied by the distance travelled, in nautical miles, for the specified routes above, following the shortest route.

Please send any comments or questions to tankers@spglobal.com and pricegroup@spglobal.com by Nov. 1, 2024.

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