In a major development, S&P Global Platts has announced that they will start publishing a new daily weighted average Capesize time charter equivalent (TCE) rate, to be named CapeT4 Index, reflecting ton-mile demand on four key TCE assessments from October 1, 2019, says a press release published on their website.
Market Lacks TCE Index
The Capesize market currently lacks a weighted average TCE index based on trade flow volume, and capturing the movement of widely consumed commodities such as iron ore and coal will help represent the spot market accurately.
How will it be done?
- The CapeT4 Index assessment will be derived by applying an allocated weighting to the daily TCE assessments of four key round voyages, published at the 5:30 pm Singapore (0930 GMT) close.
- Weighting for the individual TCE assessments is determined by the volume of Capesize vessel movements observed between the regions associated with the respective voyages in the previous year 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.
Determining TCE Assessment
From October 1, 2019, the weighting for the average TCE assessment will be as follows, based on flows observed over December 1, 2017, to November 30, 2018:
- Route Voyage Symbol code Weighting (%)
- PCTCE5 N China Australia Round Voyage MRYAA00 46.308
- PCTCE8 N China S Africa Round Voyage MRYBA00 5.968
- PCTCE3A N China Atlantic Round Voyage MRYCA00 44.796
- PCTCE7 Trans-Atlantic Round Voyage CRYAA00 2.927
Platts will annually update the weighting on the first working day in January based on observed flows over December 1 to November 30 in the previous year.
For further interaction
Please send all comments or questions to shipping@spglobal.com and pricegroup@spglobal.com.
For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.
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Source: Platts
