S&P Global Platts has changed its East of Suez clean Medium Range tanker freight rate assessments for four voyages from the Persian 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.
Platts first proposed the change in a subscriber note published Feb. 10, 2021: http://plts.co/3D1l30rz772 .
These tanker freight assessments, which are assessed on a Worldscale basis, previously did not factor in the security cost.
The change is to align with 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 that fixtures, 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.
The affected daily assessments are:
Worldscale % $/mt
Arab Gulf-East Africa 35kt PFAMS00 TCAAE00
Arab Gulf-South Africa 35kt TCASX00 TCASW00
Red Sea-East Africa 35kt PFAMR00 TCABH00
West Coast India-South Africa 35kt TCAIV00 TCAIU00
The affected monthly averages are:
Arab Gulf-East Africa 35kt MR PFAQA03 TCAAE03
Arab Gulf-South Africa 35kt MR TCASX03 TCASW03
Red Sea-East Africa 35kt MR PFAQU03 TCABH03
West Coast India-South Africa 35kt MR TCAIV03 TCAIU03
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 above.
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