S&P Global Platts will start publishing a new daily weighted average Kamsarmax time charter equivalent (TCE) index, to be named KMAX 9, basis 0.5% sulfur bunker fuel and scrubber fitted ships, reflecting ton-mile demand on nine key TCE assessments from May 4, 2020.
The Kamsarmax market currently lacks a weighted average TCE index based on trade flow volume. Capturing the movement of widely consumed commodities such as grains, coal, iron ore and bauxite will help represent the spot market accurately.
The KMAX 9 index assessment for the 81,000 dwt Kamsarmax class vessel will be derived by applying an allocated weighting to the daily Panamax TCE assessments of six key round voyages published at the 5:30 pm (0930 GMT) Singapore close and three key round voyages published at the 4:30 pm (1630 GMT) London close.
The index assessment will not be published on days when either Singapore or London, or both locations are out on a public holiday.
Weighting for the individual TCE assessments is determined by the volume of Kamsarmax vessel movements observed between the regions associated with the respective voyages in the last three years from Platts trade flow software cFlow. It is 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 May 4, 2020, the weighting for the average TCE assessment will be as follows, based on flows observed over January 1, 2017 to December 31, 2019:
Route Voyage Weighting
PPTCE6eL S Kalimantan, Indonesia Paradip, India 2.50%
PPTCE44L E Kalimantan, Indonesia Guangzhou 6.50%
PPTCE3eL Richards Bay, South Africa Paradip, India 6.15%
PPTCE8L Hay Point, Australia Paradip, India 7.45%
PPTCE7L Hay Point, Australia Qingdao, China 11.25%
PPTCE20L Vancouver, Canada Qingdao, China 10.75%
PPTCE27L New Orleans, Louisiana Qingdao, China 8.75%
PPTCE26L Santos, Brazil Qingdao, China 34.25%
PPTCE10L Hampton Roads, Virginia Rotterdam, Netherlands 12.40%
Platts will also publish a monthly average assessment for the index.
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