Platts proposes tanker assessments basis Cape of Good Hope routing; proposes to discontinue COGH differentials Dec 9

Platts, part of S&P Global Commodity Insights, proposes to launch outright tanker assessments based on Cape of Good Hope (COGH) routing to reflect the movement of crude, dirty and clean products from Asia to Europe, as well as from Europe to North Asia, effective Dec. 9.

Platts also proposes to discontinue its COGH differential assessments effective Dec. 9.

Frequent attacks on tankers passing through Bab-el-Mandeb, the strait that connects the Red Sea to the Gulf of Aden, while heading to and from the Suez Canal, are forcing the majority of ships sailing from Asia to Europe and vice versa to reroute along the COGH. The longer sailing around the COGH requires an additional 15 days compared to transit through the Suez Canal for voyages from Asia to Europe and back. As a result, freight rates for voyages via the COGH are often priced higher than those for Suez Canal transit, necessitating an outright assessment based on the longer voyages.

Arbitrage oil trade through the Suez Canal has seen significant changes recently, according to trade flow software S&P Global Commodities at Sea. Last year, more than 8.2 million b/d of oil shipments, including both crude and refined products, traveled through the canal on average before the disruptions in the Red Sea. However, volumes have now plummeted to below 4.5 million b/d from the first quarter of this year.

The below assessments are the proposed assessments basis Cape of Good Hope routing:

Dirty Persian Gulf to UK Continent 280Kt WorldscalePersian Gulf to UK Continent 280Kt $/MTPersian Gulf to Mediterranean 280Kt WorldscalePersian Gulf to Mediterranean 280Kt $/MTPersian Gulf to UK Continent 140Kt WorldscalePersian Gulf to UK Continent 140Kt $/MTPersian Gulf to Mediterranean 140Kt WorldscalePersian Gulf to Mediterranean 140Kt $/MTMediterranean to Far East 130Kt LumpsumMediterranean to Far East 130Kt $/MTBlack Sea to Far East 135Kt LumpsumBlack Sea to Far East 135Kt $/MTCleanArab Gulf to UK Continent 40Kt LumpsumArab Gulf to UK Continent 40Kt $/MTArab Gulf to Mediterranean 40Kt Lumpsum Arab Gulf to Mediterranean 40Kt $/MTArab Gulf to UK Continent 65Kt Lumpsum Arab Gulf to UK Continent 65Kt $/MTArab Gulf to UK Continent 75Kt Lumpsum Arab Gulf to UK Continent 75Kt $/MTArab Gulf to Mediterranean 65Kt Lumpsum Arab Gulf to Mediterranean 65Kt $/MTArab Gulf to Mediterranean 75Kt Lumpsum Arab Gulf to Mediterranean 75Kt $/MTWest Coast to India UK Continent 65Kt Lumpsum West Coast to India UK Continent 65Kt $/MTWest Coast to India Mediterranean 90Kt Lumpsum West Coast to India Mediterranean 90Kt $/MTMediterranean to Japan 60Kt Lumpsum Mediterranean to Japan 60Kt $/MTMediterranean to Persian Gulf 60Kt Lumpsum Mediterranean to Persian Gulf 60Kt $/MTARA to Persian Gulf 60Kt Lumpsum ARA to Persian Gulf 60Kt $/MTMediterranean to Japan 80Kt Lumpsum Mediterranean to Japan 80Kt $/MTMediterranean to S Korea 80Kt Lumpsum Mediterranean to S Korea 80Kt $/MT

The COGH differentials to be discontinued are as below:

Dirty

Clean

The assessments out of the Mediterranean, ARA and Black Sea will not be published when the UK is on holiday, while those from the Persian Gulf/Arab Gulf will not be published when Singapore is closed for public holiday. The COGH differential assessments appear in Platts Dirty Tankerwire, Clean Tankerwire and on Shipping Alert pages SHP0302, SHP0304, SH0320, SH0321, SH0330, SH0331, SH0430, SH0431, SH0440, SH0441, SH1321, SH1330, SH1331 SH1440 SH1441, MH0901, MH0919, MH0924, MH1911, MH1920, MH1921, MH1970, MH1971, MH2920, MH2921, MH2922, MH2923, MH2970, MH2971, MH2980 and MH2981.

Please send all comments or questions to shipping@spglobal.com and pricegroup@spglobal.com by Nov. 7.

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 to the public upon request.