Platts proposes to discontinue East Coast Canada-US Atlantic Coast MR clean tanker freight assessment

S&P Global Platts proposes to discontinue its 38,000 mt Medium Range East Coast Canada-US Atlantic Coast clean tanker assessment, effective March 1, 2022, due to a significant drop in spot liquidity on the route in recent years.

According to market data observed by Platts, spot fixtures on the East Coast Canada-USAC route have decreased from 76 in 2019 to 43 in 2020, and to just 16 so far in 2021. In 2021, almost 90% of trade flows on this route originated from St. John, and Platts understands that cargoes from Irving's refinery in St. John are typically fixed on a time charter basis.

In addition, the decrease in spot liquidity on this route was further exacerbated, following the shutdown of the Come By Chance refinery in Newfoundland in March 2020. The company has announced plans to convert the refinery into a renewable diesel and sustainable aviation fuel plant in 2022. While renewable fuels can be shipped on Medium Range tankers, as well as on chemical tankers, Platts understands that these are typically fixed at differentials to a typical refined oil product cargo due to cleaning requirements in the tanks.

The proposed discontinuation would affect the following:

These assessments are currently published in the Clean Tankerwire and Clean Tankerwire Monthly publications; on Platts Global Alert pages 1912 and 1913, and on Platts Shipping Alert pages 2320 and 2321; and in the Platts price database under the codes above.

Please send any comments or questions by Dec. 10, 2021 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 market as confidential available to the public upon request.