November 03, 2023

Platts to launch three KMAX 9-derived Panamax dry bulk freight assessments on Dec. 1

Platts, part of S&P Global Commodity Insights, will launch three daily dry bulk Panamax freight assessments for 60,000 mt wheat shipments to Indonesia as implied rates derived from the Platts KMAX 9 index starting Dec. 1.

The proposal note for the assessment launch, first published Oct. 20, can be found in the link below:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/102023-platts-proposes-to-launch-three-kmax-9-derived-panamax-dry-bulk-freight-assessments

The KMAX 9 Index is a daily weighted average Kamsarmax time charter equivalent (TCE) index reflecting ton-mile demand on nine key TCE assessments. The KMAX 9 index assessment for the 81,000 dwt Kamsarmax class vessel is derived by applying an allocated weighting to the daily Panamax TCE assessments of six key voyages published at the Singapore close and three key voyages published at the London close.

The freight element of the calculation for the three implied freight assessments will be based on the daily value of the KMAX 9 index, while costs and expenses specific to each route will reflect standard market practice.

The three routes will be based on the following time-charter trip assumptions:

Vessel Delivery Load Port Discharge port Bunker Port
Singapore Kwinana, Australia Cigading, Indonesia Singapore
Qingdao, China Vancouver, Canada Cigading, Indonesia Vancouver, Canada
Canakkale, Turkey Constantza, Romania Cigading, Indonesia Istanbul, Turkey

Platts will include specific port charges, loading and discharge rates, vessel speed, fuel consumption and other relevant expenses specific to each route, following a robust survey of market participants.

Below are the loading/discharge rates, port costs, canal transit fees, and other key expense assumptions used for the calculation of the implied freight assessments.

Loading / Discharge rates (mt/day) Port Costs / Transit Fees & Other Expenses
Kwinana, Australia 15,000 $85,000
Vancouver, Canada 10,000 $60,000
Constantza, Romania 8,000 $70,000
Cigading, Indonesia 8,000 $120,000
Turkish Straits - $70,000
Suez Canal - $295,000
Gulf of Aden Security - $30,000
Singapore Bunkering - $4,000
Istanbul Bunkering - $4,000

Loading and discharge terms will be based on a Saturdays, Sundays, and Holidays Excluded (SSHEX) schedule assumption with 105 working hours on a given week.

Loading calculations from the port of Constantza, Romania will include a 12-hour turn time assumption, while transiting the Turkish Straits will include a waiting assumption of two days each way.

Bunkering in Singapore and Istanbul is assumed to add one day in the relevant voyages while waiting to transit the Suez Canal will also introduce an additional day in the the Constantza-to-Cigading implied freight assessment calculations.

Platts will seek to periodically review and update the port charges, loading and discharge rates, vessel speed, fuel consumption, and other relevant expenses for each route described above.

The assessments will be published in US dollars/mt and reflect a lay days-cancelling period of 15-30 days forward.

The implied freight assessment will be published in price steps of 25 cents.

The assessments will follow the KMAX 9 publication schedule and will not be published on days when either Singapore or London, or both locations are out on a public holiday.

The Constantza-to-Cigading implied freight assessment will reflect a timestamp of 16:30 London time, while the Kwinana-to-Cigading and the Vancouver-to-Cigading implied freight assessments will reflect a timestamp of 17:30 Singapore time.

The assessments will appear in the following fixed pages: SHP0620, SHP0621, PGT3932, PGT3933, SHP2620, SHP2621, PGT3938, PGT3939, PBF3938, PAA3938, PAA3939.

Please send any feedback, comments or questions 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 to the public upon request.