Platts launches Houston-Morocco VLGC implied freight rate for LPG

S&P Global Platts has begun publishing a calculated Houston-Morocco VLGC freight rate for LPG, derived from an existing Houston-Northwest Europe VLGC spot freight assessment, from Nov. 11, 2020.

This new LPG freight rate (Code: LPHMA00) reflects the value of chartering a Very Large Gas Carrier, or VLGC, from Houston to Morocco to transport a 44,000 mt cargo of LPG, loading 15-45 days forward from the date of publication.

The Houston-Morocco VLGC freight rate reflects the value at the Houston MOC close of 1:30 pm CT. It is published in dollars per metric ton and follows the Houston publishing schedule.

Platts has taken into account Marine Fuel 0.5%S prices at the relevant bunkering ports, port charges, vessel speed and fuel consumption in the calculation of the implied freight from the VLGC Freight Houston-NWE spot assessment (Code: AAXIQ00). Platts has surveyed market participants to arrive at values for these that reflect market norms, and will monitor to ensure they continue to do so.

The launch of an implied freight rate for this route follows an observed increase in LPG volumes from the USGC to Morocco. Platts understands that the largest source of butane into Moroco in 2019 was from the USGC, with the bulk of the remainder sourced from the Mediterranean and northwest Europe. Spot fixtures, however, remain limited, as the majority of cargoes on this route are moved on vessels taken on period or long-term charters.

This route is a key component of the Platts CIF Morocco ex-USGC butane assessment (Code: ABTMA00), which was launched Feb. 24, 2020, and Platts has backfilled price data for the Houston-Morocco VLGC freight rate starting from Feb. 24.

The Houston-Morocco VLGC freight rate appears in Platts LPGaswire, on fixed pages MH0780, MH0781, PC0780 and PC0781, and in the Platts price database under the codes detailed above.

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