Platts to launch weighted average Global Supramax dry bulk TCE indexes from Dec 2

Platts, part of S&P Global Commodity Insights, will publish new daily global weighted average Supramax time charter equivalent, or TCE, indices reflecting Atlantic and Pacific trade, basis 0.5% sulfur bunker fuel and scrubber-fitted ships, and comprising ton-mile rates of eleven key TCE assessments, from Dec. 2, 2024. The new indices will be called GSP 11 and GSP 11S.

The GSP 11 index will be a demand-weighted average of eleven key time charter equivalent assessments basis 0.5% sulfur bunker fuel, while GSP 11S will be an average of the same TCE assessments basis scrubber-fitted ships.

These new indexes will reflect an important part of the global dry bulk market that is otherwise not reflected in existing price benchmarks. Supramax vessels in both the Atlantic and Pacific Ocean typically remain within the regions 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 will reflect this important vessel flow that includes the movement of commodities such as grains, coal, scrap, petcoke and limestone.

The GSP 11 index assessments for the 57,000 dwt Supramax class vessel will be derived by applying an allocated weighting to the daily Supramax TCE assessments of eleven key voyages published at 1630 pm London time. The index assessment will not be published on days when either Singapore or London, or both locations have a public holiday.

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

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

From Dec. 2, 2024, the weighting for the average TCE assessment will be as follows, based on flows observed over Jan. 1, 2021 to Dec. 31, 2023:

Basis bunker fuel 0.5%: Route Voyage Weighting (%)

Basis scrubber fitted: Route Voyage Weighting (%)

Please send all comments or questions by Dec. 1, 2024, 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.