SINGAPORE, Feb. 2, 2021 /PRNewswire/ — S&P World wide Platts (“Platts”), the primary independent provider of information, analytics and benchmark costs for the commodities and energy marketplaces, has launched a new dry bulk weighted typical index – APSI 5 – for Supramax course bulkers, helpful February 1, 2021.
APSI 5 is the dry bulk freight market’s first regional weighted normal index capturing the Asia Pacific trade on Supramax bulkers, reflecting an critical segment of the world-wide dry bulk current market that is or else not mirrored in existing cost benchmarks.
The new index improves Platts’ dry bulk freight industry offering and complements the before launches of the Platts Capesize weighted normal TCE Index (Cape T4) and Platts Kamsarmax weighted normal TCE Index (KMAX 9). It delivers contributors the basis of an solution to trade both a basket of routes by means of the Index, or the personal time constitution equivalents (TCEs) as nicely as voyage constitution charges.
Peter Norfolk, Editorial Director, Worldwide Transport & Freight, S&P International Platts explained: “For much too very long, the big and speedily increasing Asia Pacific dry bulk freight market place has lacked a relevant pricing index that reflects the sector fundamentals of the area. Altering source-demand dynamics present new buying and selling possibilities, with sector participants needing to hedge their exposure centered on precise trade flows of Supramax course dry bulk vessels in the Japanese hemisphere. The new APSI 5 Index assists lose mild on an progressively essential region by providing market place participants a clear perspective of the economics of Supramax freight, catering to their unmet demands.”
The new Platts APSI 5 Index is built to greater replicate the offer and desire dynamics of the dry bulk delivery current market, aided by observed trade flow knowledge from Platts cFlow. This makes sure practical weightings for the Index based mostly on the motion of widely consumed commodities.
Supramax ships in Asia Pacific commonly stay inside of the region and the affiliated flows depend drastically on triangulation, which helps to minimize ballast time as perfectly as raise tonnage utilization and earnings.
About APSI 5 Index
Platts APSI 5 is derived by applying an allocated weighting to the day by day Time Constitution Equal (TCE) assessments of five critical voyages. Weighting for the person TCE assessments is identified by the quantity of Supramax vessel actions observed between the regions affiliated with the respective voyages over Jan 1, 2017 to Dec 31, 2019 from Platts’ vessel tracking trade circulation software, cFlow. This ensures the proper weighted typical is applied to the index.
Platts cFlow is used to observe the genuine trade flow on Supramax vessels and to compute ton-mile need. Ton-mile desire is calculated by multiplying the quantity of cargo moved in metric tons by length traveled in miles. Platts Supramax TCE assessments ($/working day) are derived from relevant voyage charter costs ($/mt).
The routes were being picked centered on comprehensive marketplace engagement around the entire world ranging from ship homeowners, charterers and ship brokers – and backed up by the trade circulation observed on Platts cFlow.
- The new index displays important vessel flows that incorporate the motion of wide-ranging commodities this kind of 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 5 crucial voyages contain:
- Newcastle, Australia-Campha, Vietnam
- Kalimantan, Indonesia-Paradip, India
- E Kalimantan, Indonesia–Guangzhou, China
- Richards Bay, South Africa-Paradip, India
- Mina Saqr, UAE-Paradip, India
- Demonstrates changing trade flows and source-desire dynamics.
More particulars about the S&P World Platts APSI 5 Index assessment methodology can be uncovered in the Subscriber Observe.
The Platts freight Time Constitution Equivalent Weighted Typical Index will be built freely offered on the website until finally the stop of 2021 and can be accessed listed here.
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About S&P International Platts
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Source S&P World Platts