Platts clarifies tanker freight assessments to continue to exclude EU ETS carbon offsetting cost

Platts, part of S&P Global Commodity Insights, clarifies that its clean and dirty tanker $/mt, Worldscale point and lump sum freight assessments will continue to be assessed exclusive of carbon offset costs following shipping's inclusion in the European Union's Emission Trading System (EU ETS) from Jan. 1, 2024.

Freight in markets where the loading and/or discharge ports fall within the scope of the EU ETS will be assessed by Platts in line with the existing freight methodology (which can be seen here: (https://www.spglobal.com/platts/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_freight.pdf), and fixtures/market indications inclusive of carbon costs will be normalized to non-carbon accounted levels.

For example, if some freight indications are reported on a given route including the cost of offsetting the carbon dioxide emissions and others are reported excluding that cost, the Platts freight price will be assessed basis the latter value and the inclusive indications will be normalized.

Platts will continue to publish carbon-accounted freight assessments and carbon emission charges on selected routes to provide accurate guidance on the EUA cost of certain tanker, container, and dry bulk freight routes following the implementation date.

An FAQ on the methodology of the carbon-accounted Aframax assessments can be viewed here: (https://www.spglobal.com/platts/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/carbon-accounted-freight-assessments-faq.pdf).

Platts will continue to monitor and review the situation and publish any bids, offers, trades or indicative market values as those become available.

Please send any questions and comments to shipping@spglobal.com and pricegroup@spglobal.com.

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.