Platts proposes to update delivered North Sea crude demurrage guidelines

Platts proposes to update delivered North Sea crude demurrage guidelines

S&P Global Platts proposes to update its guidelines for demurrage calculations in the delivered North Sea crude market, effective Jan. 11, 2021.

In line with its existing guidelines regarding freight deviation costs, Platts proposes that where no mutual agreement is reached for demurrage costs, it would expect counterparties to use the average of the cross-UK Continent 80,000 mt Aframax demurrage assessment [AMEDA00] as published in Platts Dirty Tankerwire 10 to 12 publishing days prior to the first day of the original delivery window to calculate the demurrage owed.

Platts proposes that these guidelines would be applicable to operational delays or any other instances requiring demurrage calculations.

Given Platts' understanding that the natural fixing window for Aframax vessels in the North Sea market is between 7 and 21 days prior to the first date of delivery, any applicable demurrage should be relevant to the first day of the original bid or offered delivery date range.

Please send all comments to europe_crude@spglobal.com and pricegroup@spglobal.com by Dec. 11, 2020. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.