Platts launches Atlantic Ultramax grains, ferrous scrap, petcoke TCEs and weighted average Atlantic Ultramax dry bulk TCE indexes

Platts, part of S&P Global Commodity Insights, has launched six Ultramax dry bulk time charter equivalent assessments -- reflecting shipments of grains from the US Gulf Coast and East Coast South America to the Mediterranean and Far East; ferrous scrap from the North Sea to the Mediterranean; and petcoke from the US Gulf Coast to the Mediterranean and Far East -- effective Nov. 1 to reflect the growing trade on Atlantic Ultramax routes.

The proposal note for the launch of TCEs and indexes was first published Aug. 25 and can be referenced here: (https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/082523-platts-proposes-to-launch-six-atlantic-ultramax-grains-ferrous-scrap-petcoke-tces-and-weighted-average-atlantic-ultramax-).

The launched TCE assessments for grains reflect the cost of transporting a 55,000 mt (plus/minus 10%) grains cargo on a 63,000 dwt Ultramax dry bulk vessel:

-- from New Orleans, Louisiana to Kashima, Japan, with bunkering at the port of Balboa

-- from Santos, Brazil to Qingdao, China, with bunkering at the port of Gibraltar

-- from Recalada, San Lorenzo, Argentina to Bejaia, Algeria, with bunkering at the port of Gibraltar.

The TCE launched TCE assessments for ferrous scrap reflect the cost of transporting a 55,000 mt (plus/minus 10%) scrap cargo on a 63,000 dwt Ultramax dry bulk vessel from Rotterdam, Netherlands to Aliaga, Turkey, with bunkering at the port of Rotterdam.

The launched TCE assessments for petcoke reflect the cost of transporting a 55,000 mt (plus/minus 10%) petcoke cargo on a 63,000 dwt Ultramax dry bulk vessel:

-- from New Orleans, Lousiana to Iskenderun, Turkey, with bunkering at the port of Houston

-- from Houston, Texas to Krishnapatnam, India, with bunkering at the port of Houston.

Platts will publish these TCE assessments on a standard Ultramax vessel using 0.5% marine bunker fuel and a scrubber-fitted Ultramax vessel using 3.5% sulfur fuel.

The assessments will be published on a $/day basis.

The port charges, vessel speed and bunker fuel consumption used in the TCE calculations are arrived at by extensive market survey and reflect market practice.

The assessments reflect the value at 4:30 pm London time and follow the London publishing schedule.

The assessments are:

DNQBA00-New Orleans-Kashima 50,000 mt grains time charter equivalent 0.5% VLSFO – Daily

DNQBA03-New Orleans-Kashima 50,000 mt grains time charter equivalent 0.5% VLSFO MAvg - Monthly

DNQAA00-New Orleans-Kashima 50,000 mt grains time charter equivalent scrubber-fitted - Daily

DNQAA03-New Orleans-Kashima 50,000 mt grains time charter equivalent scrubber-fitted MAvg – Monthly

GSBQE00-Santos-Qingdao 50,000 mt grains time charter equivalent 0.5% VLSFO – Daily

GSBQE03-Santos-Qingdao 50,000 mt grains time charter equivalent 0.5% VLSFO MAvg - Monthly

GSBQF00-Santos-Qingdao 50,000 mt grains time charter equivalent scrubber-fitted - Daily

GSBQF03-Santos-Qingdao 50,000 mt grains time charter equivalent scrubber-fitted MAvg – Monthly

GARAF00-Recalada-Bejaia 40,000 mt grains time charter equivalent 0.5% VLSFO – Daily

GARAF03-Recalada-Bejaia 40,000 mt grains time charter equivalent 0.5% VLSFO MAvg - Monthly

GARAG00-Recalada-Bejaia 40,000 mt grains time charter equivalent scrubber-fitted - Daily

GARAG03-Recalada-Bejaia 40,000 mt grains time charter equivalent scrubber-fitted MAvg – Monthly

MSRAA00-Rotterdam-Aliaga 40,000 mt ferrous scrap time charter equivalent 0.5% VLSFO - Daily

MSRAA03-Rotterdam-Aliaga 40,000 mt ferrous scrap time charter equivalent 0.5% VLSFO MAvg - Monthly

MSRAB00-Rotterdam-Aliaga 40,000 mt ferrous scrap time charter equivalent scrubber-fitted – Daily

MSRAB03-Rotterdam-Aliaga 40,000 mt ferrous scrap time charter equivalent scrubber-fitted MAvg – Monthly

CIPHA00-New Orleans-Iskenderun 50,000 mt petcoke time charter equivalent 0.5% VLSFO - Daily

CIPHA03-New Orleans-Iskenderun 50,000 mt petcoke time charter equivalent 0.5% VLSFO MAvg - Monthly

CIPHB00-New Orleans-Iskenderun 50,000 mt petcoke time charter equivalent scrubber-fitted - Daily

CIPHB03-New Orleans-Iskenderun 50,000 mt petcoke time charter equivalent scrubber-fitted MAvg -Monthly

GPHTE00-Houston-Krishnapatnam 50,000 mt petcoke time charter equivalent 0.5% VLSFO - Daily

GPHTE03-Houston-Krishnapatnam 50,000 mt petcoke time charter equivalent 0.5% VLSFO MAvg - Monthly

GPHTF00-Houston-Krishnapatnam 50,000 mt petcoke time charter equivalent scrubber-fitted - Daily

GPHTF03-Houston-Krishnapatnam 50,000 mt petcoke time charter equivalent scrubber-fitted MAvg -Monthly

Also, Platts has launched new daily weighted average Ultramax time charter equivalent indexes reflecting Atlantic trade, basis 0.5% sulfur bunker fuel and scrubber-fitted ships and comprising ton-mile rates of the six key TCE assessments, effective Nov. 1.

The proposal note for the launch of TCEs and indexes was first published Aug. 25 and can be referenced here: (https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/082523-platts-proposes-to-launch-six-atlantic-ultramax-grains-ferrous-scrap-petcoke-tces-and-weighted-average-atlantic-ultramax-).

The new indexes are called AUI 6 and AUI 6S.

The launched AUI 6 index is a demand-weighted average of the six key time charter equivalent assessments basis 0.5% sulfur bunker fuel, while AUI 6S is an average of the same TCE assessments basis scrubber-fitted ships.

The launched indexes reflect an important part of the global dry bulk market that is otherwise not reflected in existing price benchmarks.

Ultramax vessels in the Atlantic Ocean typically remain within the region and the associated flows depend significantly on triangulation, which helps to minimize ballast time as well as boost tonnage utilization and earnings.

The launched indexes reflect this important vessel flow that includes the movement of commodities such as grains, scrap and petcoke.

The launched AUI 6 index assessments for the 63,000 dwt Ultramax class vessel derives by applying an allocated weighting to the daily Ultramax TCE assessments of the six key voyages published at 4.30 pm London time. The index assessment follows the Platts London publishing schedule.

The weighting for the individual TCE assessments are:

Basis bunker fuel 0.5%Route VoyageWeighting (%)

DOP SWPNew Orleans, Louisiana to Kashima, Japan22%

DOP SWPHouston, Texas to Krishnapatnam, India17%

DOP SWPNew Orleans, Louisiana to Iskenderun, Turkey5%

DOP GibraltarSantos, Brazil to Qingdao, China33%

DOPRecalada San Lorenzo, Argentina to Bejaia, Algeria20%

DOPRotterdam, Netherlands to Aliaga, Turkey3%

Basis scrubber fittedRoute VoyageWeighting (%)

DOP SWPNew Orleans, Louisiana to Kashima, Japan22%

DOP SWPHouston, Texas to Krishnapatnam, India17%

DOP SWPNew Orleans, Louisiana to Iskenderun, Turkey5%

DOP GibraltarSantos, Brazil to Qingdao, China33%

DOPRecalada San Lorenzo, Argentina to Bejaia, Algeria20%

DOPRotterdam, Netherlands to Aliaga, Turkey3%

The assessments appear in Dry Freight Wire, Platts Shipping Alert pages SH2614, SH2615, SH0612 and SH0613, and in the Platts price database under the codes above.

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