S&P Global Platts is proposing to change its methodology for assessing East of Suez clean Medium Range tanker freight rates for four voyages from the Arab Gulf, Red Sea and West Coast India to East Africa and South Africa to an all-inclusive basis that incorporates a security cost, effective April 1, 2021.
Currently, these tanker freight assessments, which are assessed on a Worldscale basis, do not factor in the security cost.
The proposed change is to align with the current market practice, where the security cost for freight into East Africa and South Africa is now included in a single Worldscale rate by market participants for these voyages. Platts understands fixtures concluded, those placed on subjects, bids, offers and freight indications on these routes are currently based on an all-inclusive Worldscale freight rate.
Previously, a lumpsum security cost of around $150,000 was charged separately from the Worldscale freight rate for these voyages.
These assessments appear in the Platts Clean Tankerwire; on pages PGT2920, PGT2921, SHP0320 and SHP0321; as well as in the Platts price database under the codes shown above.
Please send any questions or comments to firstname.lastname@example.org and email@example.com by Feb. 26, 2021.
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.