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. US Gulf Coast load ports for this assessment include Houston and New Orleans, while ports located south of Salvador are considered for discharge in Brazil.

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. 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

  • MR Worldscale route rates dip 2% on the day
  • Shipowners re-strategize ballasting on lower USGC rates

The cost of carrying clean petroleum products on the Americas clean tanker market fell 2% on the Caribbean-upcoast and US Gulf Coast-Brazil Worldscale routes but was rangebound on lump-sum voyages April 9.

Despite conversations this week of ballasting activity increasing from the US Atlantic Coast to the USGC, shipowners with tankers on the USAC decided to ballast to the European region in response to freight for Medium-Range tankers decreasing in the USGC April 8.

“Some shipowners committed to ballast to the [USGC], but I believe those decisions were made earlier in the week,” a shipbroker said. “If you had to make the decision today, I think it would be a bit more difficult to decide which way to send. As a result, there are at least three to four ships headed to Europe today from the USAC.”

Despite the decrease in tankers from the USAC, position lists for the USGC are expected to increase as ships continue to ballast from the Panama Canal and the Caribbean, another shipbroker said.

On the USGC-Far East run, activity continued to remain subdued as no fresh fixtures or cargoes loaded on the day.

“There have been a number of naphtha tenders, but the majority of the Far East’s naphtha will still come from the Arab Gulf,” the first shipbroker said.

S&P Global Platts assessed rates on routes through the Panama Canal were unchanged on the day, in line with steady indications.

SOL was heard to have withdrawn its 38,000 mt USGC-Caribs stem, loading April 16-18.

Market sentiment on Worldscale routes was lower amid a marked lack of fresh USGC-loading stems and SOL heard to have withdrawn their 38,000 mt USGC-Caribs cargo. Platts assessed freight for the Caribs-USGC and USGC-Brazil routes w2.5 lower at w117.5 and w125, respectively.

Platts Clean Tanker Heards

09 Apr 2021 — Seaways Kythnos 38 CL Apr10 Balboa-Ecaudor rnr cnr

09 Apr 2021 — USGC Demurrage 38kt pegged at $18.5k/d

09 Apr 2021 — USGC-Brazil/NBrazil 60k pegged at w100

09 Apr 2021 — Caribbean-USAC/USGC 38k pegged at w120

09 Apr 2021 — ECCanada (Come by Chance)-USAC 38k pegged at $340k

09 Apr 2021 — USGC-Caribbean 38k pegged at $425k

09 Apr 2021 — USGC-UKC/Med 60k pegged at w75

09 Apr 2021 — USGC-Peru 38k pegged at $1.025m

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