METHODOLOGY: Platts to amend CFR Taiwan/China PX laytime, demurrage guidelines

S&P Global Platts will amend the guidelines reflected in its CFR Taiwan/China PX assessments for laytime and demurrage on open origin deliveries, effective January 6, 2020. Platts will also further amend similar guidelines on Asia origin indications reflected in the assessments.

Platts proposed this change in a subscriber note published November 18, 2019 (http://plts.co/8RRP30pZd07).

OPEN ORIGIN LAYTIME: From January 6, 2020, for open origin PX cargo trades reported through the Market on Close assessment process, the discharge rate (laytime) upon delivery of cargoes should reflect either as stated in the charter party or capped at 150 mt per hour for a 5,000 mt cargo, whichever is the lower of the two.

NEAR HAUL LAYTIME: In addition to the above, the discharge rate (laytime) upon delivery of near-haul PX cargoes, also called 'Asian origin' cargoes, against trades in the MOC process will reflect either as stated in the charter party or capped at 125 mt per hour for a 5,000 mt cargo, whichever is the lower of the two.

DEMURRAGE: Also from January 6, 2020, for PX cargo trades reported through the Market on Close assessment process, buyers who receive a 5,000 mt cargo on a non-commensurate vessel should not be exposed to demurrage charges beyond the rate associated with the commensurate vessel size used to deliver PX cargo, which from an extensive study of the shipping market and from market feedback, Platts has found to be up to 20,000 dwt. Sellers may deliver cargoes against MOC trades into CFR Taiwan/China on a larger vessel should they choose to, but the buyer should not be exposed to the full demurrage as stated in the charter party for a vessel above 20,000 dwt.

Also from January 6, 2020, Platts will only publish bids and offers that do not state vessel size. Buyers would accept a 5,000 mt clip delivered on varying sized vessels.

Platts reiterates that it reflects PX of open origin in the Market on Close process.

Please send all queries and feedback to petchems@spglobal.com, with a copy to 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 upon request.