Price Assessment

Platts Clean USGC-Brazil 38kt MR Assessment

  • What is USGC-Brazil 38kt MR Clean Tanker Assessment?
  • How do we assess the USGC-Brazil 38kt MR Clean Tanker Assessment?
  • Platts Americas Clean Tanker Daily Commentary
  • Platts Clean Tanker Heards

What is USGC-Brazil 38kt MR Clean Tanker Assessment?

Note: The Platts Clean USGC-Brazil 38kt MR daily assessments pricing will be available on this page till December 31, 2021.

The 38,000 mt US Gulf Coast-Brazil freight assessment captures the cost of chartering a spot Medium Range tanker to lift 38,000 metric tons of petroleum products, typically diesel, gasoline or naphtha, on the US Gulf Coast for discharge along the Southern half of Brazil's coast.

Freight for the route is assessed on a Worldscale basis and also in US dollars per metric ton. In markets where freight is traded on a Worldscale basis, Platts publishes freight assessments that reflect a percentage of the prevailing Worldscale annual flat rate basket the assessment is based on.

From: To:

Houston

Santos

Houston

Tramandai

Houston

Salvador

New Orleans

Santos

New Orleans

Tramandai

New Orleans

Salvador


The Worldscale flat rates are published each year by the Worldscale Association. From time to time, the Worldscale Association publishes revisions to these flat rates in its circulars. Platts reviews these changes with the industry for possible inclusion into Platts freight calculations. Platts will update the market of any such changes through published subscriber notes. Platts determines the equivalent $/mt freight rate based on a basket of Worldscale flat rates comprising several key routes between the two regions specified in the assessment.

More information:

New waves in freight, part I: USGC-Brazil route emerges as barometer for tanker market >

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How do we assess the USGC-Brazil 38kt MR Clean Tanker Assessment?

Unlike some of our competitors, in our assessments of tanker freight, we survey all market participants: ship owners, charterers, and shipbrokers. Our daily assessments settle at a singular number based on trades or market heards, feedback from market participants on where they see tradeable levels, rather than averages of multiple indications. In an assessment period we take into account bids, offers, indications of tradeable levels, and spot trades on the route and related routes to determine the assessment rate for a given route. Our Platts Market on Close assessment process is aligned with the NYMEX close at 13:30 Central and captures trades and activity during the day of the assessment, making for a more recent and up-to-date assessment than some of our European-based competitors.

More Information: Specifications Guide Global Freight >

Platts Americas Clean Tanker Daily Commentary

  • Long-haul rates to Chile, Brazil falter on testing
  • Owners feel pressure from rising bunker costs


Despite rising prices on bunker fuels, Medium Range tanker freight in the Americas dropped on long-haul Medium Range voyages Jan. 18 amid testing to Brazil and West Coast South America.


One trade on the 38,000 mt US Gulf Coast-Brazil run from Jan. 17 set freight lower at the start of business Jan. 18. Petrobras had placed the Joropo on subjects to lift a cargo of gasoline Jan. 23-25 at 138 Worldscale points, sources reported. The trade marked an almost w7 point decrease from the last-done rate of w144.99 by Petrobras Jan. 11.

Two fresh cargoes were heard open early during the trading day Jan. 18, including a combined ULSD and gasoline cargo by BP intended to load Jan. 23-25 on the USGC and discharge in the Caribbean basis Jamaica. Additionally, ENAP was heard looking for an MR to load Jan. 24-25 for a voyage to Chile. Sentiment was mixed, with some owners and brokers expecting next-traded rates would settle slightly below or at rates observed in the week ended Jan. 14.

A trade was reported on the USGC-Peru on the 2002-built Elka Hercules at lump sum $1.1375 million. The laycan and charterer on the fixture could not be confirmed. Market participants said the lump sum $1.1375 million rate was not repeatable for modern tonnage in the natural Jan. 22-28 fixing window.

Close to the Platts Market on Close assessment process Jan. 18, a shipowner heard offer levels on the USGC-Caribbean route ranged between lump sum $520,000 to $525,000. As of the Platts MOC timing, both the BP and ENAP cargoes were uncovered, according to shipbrokers.

The USGC-Caribbean route fell $10,000 day on day to settle at lump sum $515,000, in line with softer indications on the day. The USGC-Peru and USGC-Chile routes both fell $50,000 day on day, assessed at lump sum $1.175 million and $1.375 million, respectively.

Freight on the 38,000 mt USGC-Brazil route was talked unchanged from the w138 level traded Jan. 17, and the route was assessed w7 lower on the day to reflect the last-done rate.

Houston ex-wharf 1.5%S bunker fuels were assessed at $630/mt Jan. 18. increasing 6% on the week following strengthening on US crude oil markets over the US Martin Luther King Jr. holiday weekend.

Platts Clean Tanker Heards

18 Jan 2022 — Centiennial Matsuyama 38 CL Jan19 USGC-Chile rnr cnr

18 Jan 2022 — UACC Mirdif 38 CL Jan19 USGC-Caribs $525k cnr

18 Jan 2022 — FLD Lian Gui Hu 60 ULSD Jan24-26 USGC-Brazil, TA w100, w85 Valero

18 Jan 2022 — USGC-Brazil/NBrazil 60k pegged at w92.5

18 Jan 2022 — ECCanada (Come by Chance)-USAC 38k pegged at $400k

18 Jan 2022 — USGC-Chile 38k pegged at $1.4m

18 Jan 2022 — USGC-Argie/Brazil/NBrazil 38k pegged at w138

18 Jan 2022 — USGC-Japan/SKorea 38k pegged at $1.5m


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