Shipping analysts S&P Global Platts has begun publishing dry bulk Time Charter Equivalent (TCE) assessments basis 0.5% sulphur marine fuel and individual scrubber premium indexes for Capesize, Panamax, Ultramax and Supramax class ships globally.
The new assessments were launched on 1 November – two months before the new IMO global cap on sulphur kicks in. They are calculated using daily Marine Fuel 0.5% delivered bunker prices published by Platts. The vessel speed and consumption used in the TCE calculations were derived by extensive market survey and reflect market practice for vessels using the low sulphur fuel.
With more than 3,000 vessels estimated to be fitted with scrubbers to comply with IMO 2020 regulations, Platts said it will continue to publish TCE assessments basis 3.5% sulphur 380 CST bunker fuel prices for Capesize, Panamax, Ultramax and Supramax.
The assessments reflect scrubber-fitted ships from 1 November 2019, with the vessel speed and consumption used in the TCE calculations based on market practice for vessels using high sulphur fuel oil. 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.
Platts has also started publishing individual scrubber premium indexes for Capesize, Panamax, Ultramax and Supramax ships from 1 November 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.