Platts launches dual TCEs for scrubber, non-scrubber ships

S&P Global Platts started publishing dry bulk Time Charter Equivalent (TCE) assessments basis 0.5% sulfur marine fuel and individual scrubber premium indexes for Capesize, Panamax, Ultramax and Supramax class ships globally from November 1, 2019.

The launch of these assessments has come two months ahead of the introduction of new sulfur limits in marine fuels by the International Maritime Organization from January 1, 2020.

The new TCE assessments are calculated using daily Marine Fuel 0.5% delivered bunker prices published by Platts. The vessel speed and consumption used in these TCE calculations were derived by extensive market survey and reflect market practice for vessels using the low sulfur fuel.

With more than 3,000 vessels estimated to be fitted with scrubbers to comply with IMO 2020 regulations, Platts will continue to publish TCE assessments basis 3.5% sulfur 380 CST bunker fuel prices for Capesize, Panamax, Ultramax and Supramax.

The assessments reflect scrubber-fitted ships from November 1, 2019, with the vessel speed and consumption used in these TCE calculations based on market practice for vessels using high sulfur fuel oil.

All other variables such as port charges, sea margin of 5% and commission at 5% used in both 0.5% sulfur marine fuel and high sulfur bunker TCE calculations remains unchanged.

The full list of existing TCE assessments and their price symbol codes affected by the changes can be found here: http://plts.co/OqAH30pzv7z

Platts has also started publishing individual scrubber premium indexes for Capesize, Panamax, Ultramax and Supramax ships from November 1, 2019, due to growing interest from shipping market participants looking to factor in the returns from operating a ship basis both fuel grades.

The scrubber indexes reflect the average of the difference between the TCE returns for scrubber-fitted and non-scrubber ships for respective routes under each vessel class.

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