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

December 01, 2023

Platts launches carbon emission charges, carbon-accounted Dry Bulk Freight assessments

Platts, part of S&P Global Commodity Insights, has launched all-inclusive carbon-accounted freight assessments for selected daily dry bulk routes, along with standalone carbon emission charge assessments effective Dec. 1, 2023.

The decision note for the assessment launch, published Oct. 20, can be found in the link below:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/102023-platts-launches-carbon-emission-charges-and-carbon-accounted-dry-bulk-freight-assessments-dec-1-2023

Platts first proposed those assessments in a subscriber note published Sept. 29, which can be found in the link below:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/092923-platts-proposes-to-launch-carbon-emission-charges-and-carbon-accounted-dry-bulk-freight-assessments-dec-1-2023

The carbon emission charge and the carbon-accounted dry bulk freight assessments reflect the laden leg of the following voyage routes:

Segment Load Port Discharge port Cargo Size (kt)
Capesize Tubarao, South Brazil Rotterdam, Netherlands 170
Capesize Hay Point, Northeast Australia Rotterdam, Netherlands 160
Capesize Puerto Bolivar, Colombia Rotterdam, Netherlands 150
Panamax Port Cartier, East Coast Canada Rotterdam, Netherlands 70
Panamax Ventspils, Latvia Rotterdam, Netherlands 70
Panamax Mobile, US Gulf Coast Rotterdam, Netherlands 70
Panamax Hampton Roads, US East Coast Rotterdam, Netherlands 70
Panamax Kamsar, West Africa San Ciprian, Spain 59
Supramax Riga, Latvia Aliaga, Turkey 35
Supramax Rotterdam, Netherlands Aliaga, Turkey 40
Supramax Rotterdam, Netherlands Aliaga, Turkey 30

Based on the EU Emission Trading System (EU ETS) phase-in inclusion of shipping, the carbon emission charge and the carbon-accounted Dry Bulk Freight assessments reflect 40% of the carbon dioxide emissions created on voyages involving European Union ports and European Economic Area berths according to the scope described above for 2024, increasing to 70% for 2025 and to 100% for 2026 onwards.

In addition, the carbon emission charge and the carbon-accounted Dry Bulk Freight assessments reflect the cost to offset:

  • 100% of carbon dioxide emissions for intra-EU voyages and time spent in European Economic Area (EEA) berths,
  • 50% of carbon dioxide emissions for all inbound and outbound voyages between EU and non-EU member states.

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

The proposed assessments are published in US dollars/mt.

The calculations use the daily EU Emission Allowance Nearest-December price (EADLP00) as published by Platts. The voyage carbon emissions based on 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, 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

The carbon emission charges and carbon-accounted Dry Bulk Freight assessments appear in the Platts Pricing Database and the Dry Freight Wire publication.

They also appear in the following fixed pages: SHP1515, SHP3030.

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.