Maritime & Shipping, Refined Products, Energy Transition, Fuel Oil, Diesel-Gasoil, Bunker Fuel, Emissions, Carbon

November 17, 2023

Platts to amend Container Carbon Emissions Charge assessment methodology from Jan 2

Platts, part of S&P Global Commodity Insights, will amend the methodology for its daily Carbon Emissions Charge Container assessments, effective Jan. 2, to reflect guidance in the final compromise text on the EU's Emissions Trading System released in February.

Effective Jan. 2, Platts Carbon Emissions Charge Container assessments, in line with the final European Parliament compromise text, will reflect the cost to move a forty-foot equivalent unit on a container vessel pertaining to the following regulation:

  • 50% of carbon emissions for all inbound and outbound voyages between EU and non-EU member states.

Currently, all carbon emission charges reflect cost of off-setting 100% carbon emissions.

The assessments affected by the methodology change are:

Front Haul Back Haul
Assessment Name Daily Code Monthly Average Code
PCEC1 North Asia to North Continent CEF0100 CEF0103
PCEC9 North Continent to East Coast North America CEF0900 CEF0903
PCEC15 North Continent to East Coast South America CEF1500 CEF1503
PCEC17 Indian Subcontinent to North Continent CEF1700 CEF1703
PCEC35 Europe to West Africa CEF3500 CEF3503
PCEC2 North Continent to North Asia CEF0200 CEF0203
PCEC10 East Coast North America to North Continent CEF1000 CEF1003
PCEC16 East Coast South America-North Continent CEF1600 CEF1603
PCEC18 North Continent to Indian Subcontinent CEF1800 CEF1803
PCEC36 West Africa to Europe CEF3600 CEF3603

In addition, Container Carbon Emissions Charges will adjust for appropriate volume allocation on both the Front Haul and the Back Haul routes for each Emission Charge, designating percentage multipliers for both, to reflect liquidity in trade flows.

The volume allocation on Front Haul and Back Haul routes is the same as reflected in Platts Bunker Charges and can be found here:

https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/downloads/pcec-volume-allocations.xlsx

The volume allocation is subject to change by Platts as and when market conditions change.

Platts launched Container Carbon Emissions Charges on March 1, 2023:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030123-platts-launches-carbon-accounted-container-assessments-on-10-key-routes-on-march-1

The assessments are published in Platts Dry Freight Wire; on Platts Shipping Alert (SHP) page 0520 and Platts Bunker Add-on (PBG), 3960; as well as in the Platts price database under the codes above.

The calculations use the daily EU Emission Allowance Nearest-December price (EADLP00) as published by Platts. The tank-to-wake carbon emissions based on the fuel consumption are calculated using the carbon conversion factors published in Annex 1 of Regulation (EU) 2015/757 of the European Parliament and of the Council on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport.

These carbon conversion factors, which have been published by Platts since Aug. 1, 2022, are:

Assessment Name Value Daily Code
Carbon Conversion Factor 0.5% VLSFO 3.151 t-CO2/T-fuel ASFOA00
Carbon Conversion Factor 0.1% MGO 3.206 t-CO2/T-fuel AMGOA00

Platts publishes the values as defined in the relevant European legislation and will reflect any updates accordingly. 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.