Platts launches Global Clean Tanker TCE indices Nov 3

Platts, part of S&P Global Commodity Insights, has launched three daily Global Clean Tanker time charter equivalent ton-miles weighted indices for Medium Range (GCTMR), Long Range 1 (GCTLR1) and Long Range 2 (GCTLR2) tankers, based on non-scrubber, non-eco class ships using 0.5% sulfur bunker fuel, effective Nov. 3.

Simultaneously, Platts has also launched three Global Clean Tanker TCE ton-miles weighted indices for Medium Range (GCTMRSE), Long Range 1 (GCTLR1SE) and Long Range 2 (GCTLR2SE) tankers, based on scrubber-fitted, eco-class design ships using 3.5% sulfur bunker fuel.

Given the major changes in global seaborne refined products trade, marked by new production and consumption areas, the clean tanker freight market currently lacks a comprehensive weighted TCE index that accurately reflects trade flow volume. As the global clean tanker fleet evolves to improve fuel efficiency, various ship types, including those with scrubbers and eco-designs, have emerged, resulting in varying daily returns.

To support the launch of GCTMR, GCTMRSE, GCTLR1, GCTLR1SE, GCTLR2 and GCTLR2SE, Platts has also launched two series of calculated TCE clean tanker assessments for each ship class, with each series serving non-scrubber and scrubber-fitted eco-ships, respectively.

The introduction of these two TCE rate series for both non-eco, non-scrubber and scrubber-fitted eco-ships aims to capture the market's upper and lower earnings ranges, providing clearer insight into TCE earnings across different clean tanker categories. The clean tanker TCE assessments and indices cover the following weight-assigned routes:

The Global Clean Tanker indices will not be published on days when any of London, Singapore or Houston, or all three locations, observe a public holiday.

The TCE assessments for the routes UKC-WAF, UKC-USAC, UKC-ECSA, MED-USAC and MED-FAR EAST are published at 4:30 pm London time stamp and follow the London publishing schedule.

The TCE assessments for the routes AG-EAST AFRICA, FAR EAST-FAR EAST, FAR EAST-SOUTHEAST ASIA, AG-FAR EAST and AG-UKC are published at 4:30 pm Singapore time stamp and follow the Singapore publishing schedule.

The assessments for the routes USGC-CARIBS, USGC-CHILE and USGC-UKC are published at 1:30 pm Houston time stamp and follow the Americas holiday schedule.

The weightings for individual TCE assessments are based on the volume of clean tanker ship movements, as observed by data from S&P Global Commodities at Sea, converted to ton-miles. The ton-miles demand estimate is derived from the cargo volume in metric tons over 2022-24 between regions, multiplied by the distance traveled in nautical miles for the specified routes, following the shortest route.

Platts Global Clean Tanker Index

Platts has also launched a Global Clean Tanker Index, a combined wet bulk freight industry marker derived from the proposed weighted average time charter equivalent indices, namely the Global LR2 Indices (GCTLR2 and GCTLR2SE), the Global LR1 Indices (GCTLR1 and GCTLR1SE) and the Global MR Indices (GCTMR and GCTMRSE), effective Nov. 3.

The Platts Clean Tanker Index is published in dollars per day ($/day) for both non-eco, non-scrubber ships (CTI) and eco-class, scrubber-fitted ships (CTISE), following the logic of capturing the market's upper and lower earning ranges.

The index assessments will not be published on days when either London, Houston or Singapore, or all three locations, have a public holiday.

The Platts Global Clean Tanker Index weighs the individual indices based on the ton-days observed for LR2, LR1 and MR tankers globally over the last three full years (2022-24) from trade flow software CAS. Ton-days demand is calculated by multiplying the volume of cargo moved in metric tons by the duration of each tracked shipment in days.

The weighting for the Platts Global Clean Tanker Index is as follows, based on ton-days observed from Jan. 1, 2022, to Dec. 31, 2024:

Platts may review all weightages in the event of a substantial change in observed trade flows.

Platts earlier announced the decision to launch the above assessments in a subscriber note published Oct. 6.

The assessments are published in the Platts Clean Tankerwire and Platts Clean Tankerwire Monthly and on fixed pages PGT0044, PGT0045, PGT0046, PGT0047, PGT0048, PGT0049, PGT0070, PGT0071, SHP0014, SHP0015, SHP0016, SHP0017, SHP0018, SHP0019, SHP0020 and SHP0021.

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