Platts clarifies observed Russian port Investment Dues market impact

Following a period of research across commodity sectors, S&P Global Platts wishes to clarify the observed market impact of the introduction of new Investment Dues at selected Russian ports effective March 2, 2021.

In consultation with market participants across commodity sectors with assessments referencing the relevant Russian ports, Platts has determined that the additional dues are being passed through the Charterers' Accounts as per normal trading practices and on to the final end-user via the cost of the Charterparty under which the end user has loaded (as the Charterer) or received the final goods.

Moreover, Platts understands that after accounting for the USD/barrel or USD/metric ton value of the additional fees, the increase in shipping costs is negligible for assessment purposes.

For these reasons, Platts spot and netback assessments for loading at these specific Russian ports will not include additional, separate provisions for Investment Dues.

According to port agent information, the new dues apply to all vessel cargo operations loading for international exports at the following Russian ports: De-Kastri, Murmansk, Nakhodka, Novorossiisk, Prigorodnoe, Primorsk, Saint-Petersburg, Tuapse, Ust-Luga, Vanino, Vladivostok, Vostochny, Vysotsk.

Platts understands that Worldscale issued a circular detailing the new dues for the Charterers' Account as an interim measure.

Please refer to the Worldscale website for more information.

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