S&P Global Platts will begin publishing daily assessments for delivered bunker fuel reflecting a maximum sulfur limit of 0.5% and low sulfur marine gasoil with maximum 0.1% sulfur limit at the east Chinese port of Zhoushan starting July 1, 2019.
This follows the emergence of Zhoushan port in recent years as a prominent hub for bunkering in Northeast Asia. The launch of these assessments would come six months ahead of the planned introduction of new sulfur limits in marine fuels by the International Maritime Organization from January 1, 2020.
Platts first proposed launching delivered bunker fuel and LSMGO assessments at Zhoushan in a subscriber note published April 12, 2019: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/041219-platts-proposes-imo-compliant-bunker-assessments-at-zhoushan-from-july-1.
Platts began publishing daily cargo and barge assessments for Marine Fuel 0.5% across the globe starting January 2, 2019: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/010919-subscriber-note-update-platts-launches-marine-fuel-05-sulfur-cargo-barge-assessments.
In line with Platts cargo assessments, the Zhoushan delivered bunker assessment would reflect specifications for RMG fuels as defined by the International Organization for Standardization in document ISO 8217:2010 Petroleum products -- Fuels (class F) -- Specifications of marine fuels, but with a maximum sulfur limit of 0.5%.
The LSMGO assessment would reflect fuels that conform with specifications for DMA ISO 8217:2010 with maximum sulfur content of 0.10%.
ASSESSMENT LAYCAN: The delivery period reflected in the delivered bunker assessments would be 5-10 days from the date of publication.
Buyers and sellers participating in the Platts Market on Close assessment process for delivered bunkers would be required to specify three consecutive days for delivery within the assessment laycan of 5-10 days from the date of publication.
For example, on July 1, Platts would publish interest from buyers and sellers for bunker deliveries on July 6-8, July 7-9, July 8-10 and July 9-11.
ASSESSMENT VOLUME: The volume reflected in the delivered bunker fuel assessment would be between 500 mt and 1,500 mt, while that for LSMGO would be 50 mt and above.
Platts would publish bids and offers for volumes in a 100-mt range for parcels under 1,000 mt, and in a 200-mt range for parcels above 1,000 mt.
Buyers and sellers may submit bids and offers for the following volume range: 500-600 mt, 600-700 mt, 700-800 mt, 800-900 mt, 900-1,000 mt, 1,000-1,200 mt, 1,100-1,300 mt, 1,200-1,400 mt and 1,300-1,500 mt.
Buyers would be required to declare the exact volume to the seller within one working day after the trade has been concluded.
Buyers would be required to provide to the seller a written notice of arrival of the vessel at the place of delivery at least 48 hours prior to the day of delivery. Sellers would be expected to deliver bunker fuel that is merchantable, within Zhoushan port limits to the buyer's nominated vessel in a timely manner.
Platts may publish bids and offers for similar quality bunker fuel at Ningbo port, but will normalize these bids and offers to Zhoushan port.
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