Platts proposes to launch weighted average Supramax TCE index Feb. 1

S&P Global Platts is proposing to start publishing new daily weighted average Supramax time charter equivalent, or TCE, indices reflecting Asia Pacific trade, basis 0.5% sulfur bunker fuel and scrubber-fitted ships, and comprising ton-mile rates of five key TCE assessments, from Feb. 1, 2021. The new indices will be called APSI 5 and APSI 5S.

The APSI 5 index would be a demand-weighted average of five key time charter equivalent assessments basis 0.5% sulfur bunker fuel, while APSI 5S would be an average of the same TCE assessments basis scrubber-fitted ships.

These new indices would reflect an important part of the global dry bulk market that is otherwise not reflected in existing price benchmarks. Supramax vessels in Asia Pacific typically remain within the region and the associated flows depend significantly on triangulation, which helps to minimize ballast time as well as boost tonnage utilization and earnings.

The new indices would reflect this important vessel flow that includes the movement of wide-ranging commodities such as coal, nickel ore, limestone, dolomite, gypsum, aggregates, fertilizers, met-coke, bauxite, spodumene, iron ore, bauxite, manganese, grains and sugar.

At the same time, Platts is proposing to start publishing Supramax voyage and TCE assessments for the Newcastle, east coast of Australia to Campha, Vietnam route from Feb. 1, 2021 to reflect the increasing liquidity on this thermal coal route ( http://plts.co/cGAJ30rnUpC ).

The APSI 5 index assessments for the 57,000 dwt Supramax class vessel would be derived by applying an allocated weighting to the daily Supramax TCE assessments of five key round voyages published at the 5:30 pm Singapore close (0930 GMT). The index assessment would follow the Platts Singapore publishing schedule.

Weighting for the individual TCE assessments would be determined by the volume of Supramax vessel movements observed between the regions associated with the respective voyages in the last three years from Platts trade-flow software cFlow, calculated in ton-miles.

Ton-mile demand is calculated by multiplying the volume of cargo moved in metric tons by distance traveled in miles.

From Feb. 1, 2021, the weighting for the average TCE assessment would be as follows, based on flows observed over Jan. 1, 2017 to Dec. 31, 2019:

Please send all comments or questions by Dec. 31, 2020 to shipping@spglobal.com and pricegroup@spglobal.com.

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