Platts proposes adding Yeosu to S Korean discharge port basket in clean tanker assessments

S&P Global Platts is proposing to add Yeosu to the basket of South Korean discharge ports used in the dollar per metric ton calculations for all its Arab Gulf-South Korea, Red Sea-South Korea and Singapore-South Korea clean tanker assessments from April 1, 2021.

The proposed addition, which will bring the number of South Korean discharge ports to three, from two currently, reflects the position of Yeosu as one of the country's most active oil ports, due to the huge volume of naphtha being delivered to major petrochemical complexes there.

Over November 2018 to November 2020, Platts has observed 76 clean product shipments moving from the Arab Gulf and Red Sea into Yeosu out of a total 123 product tankers that called at South Korea, according to data from cFlow, Platts trade-flow software. In comparison, the number of similar shipments to Ulsan/Onsan was at 12, Daesan had 29 callings and Incheon saw six shipments. The product tankers tracked were in the 30,000 dwt to 128,000 dwt range, which includes ships from Medium Range size to the Long Range 1 and 2 segments.

Following the proposed change to the port basket, the new $/mt calculations will be based on the average of the following routes (http://plts.co/cOh930rkmFq):

1. Arab Gulf-South Korea MR, LR1, LR2

Jubail-Ulsan

Ruwais-Yeosu

Bandar Mahshahr-Daesan

2. Red Sea-South Korea MR, LR1

Yanbu-Ulsan

Rabigh-Yeosu

Jeddah-Daesan

3. Singapore-South Korea MR, LR1

Singapore-Ulsan

Singapore-Yeosu

Singapore-Daesan

Currently, the $/mt calculations are based on the average of the following routes:

1. Arab Gulf-South Korea MR, LR1, LR2

Jubail-Ulsan (Onsan)

Ruwais-Ulsan

Bandar Mahshahr-Daesan

2. Red Sea-South Korea MR, LR1

Yanbu-Ulsan (Onsan)

Rabigh-Ulsan

Jeddah-Daesan

3. Singapore-South Korea MR, LR1

Singapore-Ulsan (Onsan)

Singapore-Ulsan

Singapore-Daesan

Platts is also proposing to add Yeosu to the basket of discharge ports used in the $/mt calculation for the India-South Korea 35kt MR $/mt assessment in a subscriber note published on Nov. 17, 2020 (http://plts.co/UMRN30rkn8j).

The affected assessments appear in Clean Tankerwire, Monthly Clean Tankerwire, Platts Shipping Alert pages 320, 321, 330, 331, Platts Tanker Alert pages 2920, 2921, 2922, 2923 and under the price database codes below:

Assessments Codes Mavg

Clean Arab Gulf-South Korea 35kt MR $/mt TCAAK00 TCAAK03

Clean Arab Gulf-South Korea 55kt LR1 $/mt TCAAL00 TCAAL03

Clean Arab Gulf-South Korea 75kt LR2 $/mt TCAAM00 TCAAM03

Clean Red Sea-South Korea 35kt MR $/mt TCABL00 TCABL03

Clean Red Sea-South Korea 55kt LR $/mt TCABM00 TCABM03

Clean Singapore-South Korea 30kt MR $/mt TCABR00 TCABR03

Clean Singapore-South Korea 55kt LR $/mt TCABS00 TCABS03

Please send any questions or comments to shipping@spglobal.com and pricegroup@spglobal.com by Dec. 18, 2020.

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