S&P Global Platts has started publishing time charter equivalent (TCE) assessments basis 0.5% sulphur bunker fuel for scrubber and non-scrubber dry bulk carriers from 1 November 2019, reports Seatrade Maritime News.
The assessments come two months ahead of the implementation of IMO’s stricter bunker fuel sulphur content cap at 0.5% for all ocean-going vessels from 1 January 2020, down from the current limit of 3.5%.
How are they calculated?
Platts said the new TCE assessments are calculated using daily marine fuel 0.5% delivered prices published by Platts. The vessel speed and fuel consumption used in the calculations were derived by market survey and reflect market practice for vessels using the low sulphur fuel.
How will it work out?
“With more than 3,000 vessels estimated to be fitted with scrubbers to comply with IMO 2020 regulations, Platts will continue to publish TCE assessments basis 3.5% sulphur 380 cst bunker fuel prices for capesize, panamax, ultramax and supramax,” Platts stated.
“All other variables such as port charges, sea margin of 5% and commission at 5% used in both 0.5% sulphur marine fuel and high sulphur bunker TCE calculations remains unchanged,” it said.
Scrubber Premium Indexes from November
Since 1 November this year, Platts has started publishing individual scrubber premium indexes for capesize, panamax, ultramax and supramax vessels due to growing interest from shipping market participants looking to factor in the returns from operating a ship basis both fuel grades.
The scrubber indexes reflect the average of the difference between the TCE returns for scrubber-fitted and non-scrubber ships for respective routes under each vessel class.
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Source: Seatrade Maritime News
