S&P Global Platts will change the cargo size reflected in several of its Americas Suezmax assessments, effective January 2, 2020, to better reflect the way freight in those markets is predominantly traded.
The cargo size change was first proposed in a subscriber note published October 4. (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/092719-platts-proposes-to-discontinue-90kt-150-kt-americas-freight-assessments)
Platts has observed that there has been a shift to fixing on a larger cargo basis for Suezmax voyages loading in the Caribbean in recent years, as market participants look to maximize economies of scale on routes traded on a Worldscale basis and also to take advantage of recent port upgrades and draft capabilities.
Spot fixtures and freight indications for regional Suezmax voyages loading in the Caribbean are now typically negotiated on a 150,000 mt basis.
Platts will change the cargo size basis for its Suezmax Caribbean-US Gulf Coast and Caribbean-US Atlantic Coast freight assessments to 150,000 mt, from the current 130,000 mt, and its cross-Caribbean Suezmax assessment to 150,000 mt from 140,000 mt.
For trans-Atlantic voyages out of the Caribbean, Platts has observed that the market predominantly trades on a 145,000 mt basis.
Platts will change the cargo size basis for its Suezmax Caribbean-UK Continent and Caribbean-Mediterran ean freight assessments to 145,000 mt from 130,000 mt.
The changes will affect the following:
These assessments appear on Platts Global Alert Page 1972, on Platts Shipping Alert Page 2440, in the Dirty Tankerwire and in the Platts price database under the codes above.
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