Platts launches tanker assessments basis Cape of Good Hope routing; discontinues COGH differentials Dec 9

Platts, part of S&P Global Commodity Insights, has launched outright tanker assessments based on the Cape of Good Hope (COGH) routing to reflect the movement of crude, dirty and clean products from Asia to Europe, as well as from Europe to North Asia, effective Dec. 9.

Platts has also discontinued its COGH differential assessments effective Dec. 9.

Frequent attacks on tankers passing through Bab-el-Mandeb, the strait that connects the Red Sea to the Gulf of Aden, while heading to and from the Suez Canal, are forcing the majority of ships sailing from Asia to Europe and vice versa to reroute along the COGH. The longer sailing around the COGH requires an additional 15 days compared to transit through the Suez Canal for voyages from Asia to Europe and back. As a result, freight rates for voyages via the COGH are often priced higher than those for Suez Canal transit, necessitating an outright assessment based on the longer voyages.

Arbitrage oil trade through the Suez Canal has seen significant changes recently, according to trade flow software S&P Global Commodities at Sea. Last year, more than 8.2 million b/d of oil shipments, including both crude and refined products, travelled through the canal on average before the disruptions in the Red Sea. However, volumes have now plummeted to below 4.5 million b/d from the first quarter of this year.

The below assessments have been launched basis Cape of Good Hope routing:

Dirty

Clean

The COGH differentials discontinued are as below:

Dirty

Clean

The assessments out of the Mediterranean, ARA and Black Sea will not be published when the UK is on holiday, while those from the Persian Gulf/Arab Gulf will not be published when Singapore is closed for public holiday.

The new COGH assessments appear in Platts Dirty Tankerwire, Clean Tankerwire and on Shipping Alert pages SHP0302, SHP0304, SH0320, SH0321, SH0330, SH0331, SH0430, SH0431, SH0440, SH0441, SH1321, SH1330, SH1331 SH1440 SH1441, MH0901, MH0919, MH0924, MH1911, MH1920, MH1921, MH1970, MH1971, MH2920, MH2921, MH2922, MH2923, MH2970, MH2971, MH2980 and MH2981.

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