Platts launches three KMAX 9-derived Panamax dry bulk freight assessments on Dec 1

Platts, part of S&P Global Commodity Insights, has launched three daily dry bulk Panamax freight assessments for 60,000 mt of wheat shipments to Indonesia as implied rates derived from the Platts KMAX 9 index starting Dec. 1.

The decision note for the assessment launch, published Nov. 3, can be found in the link below:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/110323-platts-to-launch-three-kmax-9-derived-panamax-dry-bulk-freight-assessments-on-dec-1

Platts first proposed launching these assessments in a subscriber note published Oct. 20, which can be found in the link below:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/102023-platts-proposes-to-launch-three-kmax-9-derived-panamax-dry-bulk-freight-assessments

The KMAX 9 Index is a daily weighted average Kamsarmax time charter equivalent (TCE) index reflecting ton-mile demand on nine key TCE assessments. The KMAX 9 index assessment for the 81,000 dwt Kamsarmax class vessel is derived by applying an allocated weighting to the daily Panamax TCE assessments of six key voyages published at the Singapore close and three key voyages published at the London close.

The freight element of the calculation for the three implied freight assessments is based on the daily value of the KMAX 9 index, while costs and expenses specific to each route reflect standard market practice.

The three routes are based on the following time-charter trip assumptions:

Platts calculations include specific port charges, loading and discharge rates, vessel speed, fuel consumption, and other relevant expenses specific to each route, following a robust survey of market participants.

Below are the loading/discharge rates, port costs, canal transit fees, and other key expense assumptions used for the calculation of the implied freight assessments.

Loading and discharge terms are based on a Saturdays, Sundays, and Holidays Excluded (SSHEX) schedule assumption with 105 working hours on a given week.

Loading calculations from the port of Constantza, Romania include a 12-hour turn time assumption, while transiting the Turkish Straits includes a waiting assumption of two days each way.

Bunkering in Singapore and Istanbul is assumed to add one day in the relevant voyages while waiting to transit the Suez Canal also introduces an additional day in the the Constantza-to-Cigading implied freight assessment calculations.

Platts will seek to periodically review and update the port charges, loading and discharge rates, vessel speed, fuel consumption, and other relevant expenses for each route described above.

The assessments are published in US dollars/mt and reflect a lay days-cancelling period of 15-30 days forward.

The implied freight assessments are published in price steps of 25 cents.

The assessments follow the KMAX 9 publication schedule and will not be published on days when either Singapore or London, or both locations are out on a public holiday.

The Constantza-to-Cigading implied freight assessment reflects a timestamp of 16:30 London time, while the Kwinana-to-Cigading and the Vancouver-to-Cigading implied freight assessments reflect a timestamp of 17:30 Singapore time.

The assessments are available in the Platts pricing database and the Dry Freight Wire,

They will also appear in the following fixed pages: SHP0620, SHP0621, PGT3932, PGT3933, SHP2620, SHP2621, PGT3938, PGT3939, PBF3938, PAA3938, PAA3939.

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.