- Platts has launched a new dry bulk weighted average index – APSI 5 – for Supramax class bulkers, effective February 1, 2021.
- Platts is the leading independent provider of information, analytics and benchmark prices for the commodities and energy markets.
- APSI 5 is the dry bulk freight market’s first regional weighted average index capturing the Asia Pacific trade on Supramax bulkers.
- It reflects an important segment of the global dry bulk market that is otherwise not reflected in existing price benchmarks.
A recent news article published in the Platts reveals the launch of new APSI 5 dry bulk weighted index.
About APSI 5 Index
Platts APSI 5 is derived by applying an allocated weighting to the daily Time Charter Equivalent (TCE) assessments of five key voyages.
Weighting for the individual TCE assessments is determined by the volume of Supramax vessel movements observed between the regions associated with the respective voyages over Jan 1, 2017 to Dec 31, 2019 from Platts’ vessel tracking trade flow software, cFlow.
This ensures the correct weighted average is applied to the index.
Use of Platts cFlow
Platts cFlow is used to observe the actual trade flow on Supramax vessels and to calculate ton-mile demand.
Ton-mile demand is calculated by multiplying the volume of cargo moved in metric tons by distance traveled in miles.
Platts Supramax TCE assessments ($/day) are derived from related voyage charter prices ($/mt).
Selection of routes
The routes were selected based on extensive market engagement around the world ranging from ship owners, charterers and ship brokers – and backed up by the trade flow observed on Platts cFlow.
- The new index reflects important vessel flows that include the movement of wide-ranging commodities such as coal, nickel ore, limestone, dolomite, gypsum, aggregates, fertilizers, met-coke, bauxite, spodumene, iron ore, bauxite, manganese, grains and sugar.
- Captures Supramax trade in the Pacific, Southeast Asia, Indian Ocean and the Persian Gulf extensively.
The five key voyages include
- Newcastle, Australia-Campha, Vietnam
- Kalimantan, Indonesia-Paradip, India
- E Kalimantan, Indonesia–Guangzhou, China
- Richards Bay, South Africa-Paradip, India
- Mina Saqr, UAE-Paradip, India
Reflects changing trade flows and supply-demand dynamics.
Additional details about the S&P Global Platts APSI 5 Index assessment methodology can be found in the Subscriber Note.
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Source: Platts
