Platts Launches Tanker Freight Rates to Reflect Costs of New Fuels
Platts, part of S&P Global Commodity Insights, has launched new price assessments for tanker base freight rates that factor in pricing for alternative fuels, the agency said on Tuesday.
The move comes as the agency expects the maritime sector's use of alternative fuels, such as liquefied natural gas (LNG) to grow significantly in the next few years.
With about 90% of world trade transported by sea, shipping accounts for nearly 3% of the world's CO2 emissions, yet environmental campaigners say regulatory efforts by the sector to cut emissions are still slow.
The latest assessments will provide an estimate of the cost of moving a 105,000-deadweight (dwt) tanker, burning either conventional bunker oil or liquefied natural gas (LNG), annually or over a specific period, Platts said in a statement. The costs will include port charges and voyage distances, it added.
The base rate is calculated by dividing the total cost by the vessel's deadweight tonnage to arrive at a dollar per tonne rate, which equates to 100 points on the scale, Platts said.
Platts will publish the rates daily using Singapore and Rotterdam bunker price assessments.
These assessments are aimed at helping the shipping industry navigate energy transition with price transparency, said Peter Norfolk, editorial director of global shipping and freight at Platts.
In future, the base rates can be replicated for other types of bunker fuels including methanol and ammonia, Platts said.
In the shipping sector, the World Scale Association also provides tanker base freight rates although its calculation is based on a 75,000-dwt tanker.
The shipping industry has been studying a number of cleaner fuel options, including methanol and ammonia, as well as trying wind sails in an effort to look for new solutions away from dirtier bunker fuel.
(Reuters - Reporting by Jeslyn Lerh; Editing by Florence Tan and Sharon Singleton)