Platts proposes CFR Taiwan/China PX laytime, demurrage guidelines

S&P Global Platts is seeking feedback on a proposal to introduce an upper limit or a cap on the demurrage and laytime for paraxylene cargoes delivered in the CFR Taiwan/China Market on Close assessment process from January 6, 2020.

DEMURRAGE

Platts is proposing that buyers who receive a 5,000 mt cargo on a non-commensurate vessel should not be exposed to demurrage charges beyond the rate associated with the most common vessel size used to deliver PX cargo, which from an extensive study of the shipping market, Platts has found to be up to 20,000 dwt. Sellers may still deliver cargoes against MOC trades into CFR Taiwan/China on a larger vessel should they choose to, but the buyer should not be exposed to the full demurrage as stated in the charter party for a vessel above 20, 000 dwt.

LAYTIME

Following a survey on PX cargoes delivered into China, Platts is proposing that the discharge rate (laytime) upon delivery of PX cargoes against trades in the MOC process should reflect either as stated in the charter party or capped at 150 mt an hour for a 5,000 mt cargo, whichever is the lower of the two.

Platts would only publish bids and offers that do not state origin or vessel size. Buyers would accept a 5,000 mt clip delivered on varying sized vessels

Platts reiterates that it reflects PX of open origin in the Market on Close process.

Please send all queries and feedback to petchems@spglobal.com, with a copy to pricegroup@spglobal.com, by November 8.

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.