Following market feedback, S&P Global Platts will launch a Lavera- Mohammedia LPG coaster freight assessment, effective Feb. 1, 2021, to provide more transparency to the regional LPG market.
The assessment will reflect the cost of chartering an LPG coaster vessel, transporting a typical 4,000 mt LPG cargo from Lavera, France, to Mohammedia, Morocco, five to 15 days forward from the date of publication.
Platts may publish pricing data or fixtures for other cargo sizes or laycans, but these may be normalized for assessment purposes.
The new freight assessment will be published in dollars a metric ton, and would reflect the transactable value at 4:30 pm London time.
LPG freight is commonly traded in the spot market on a $/mt basis, reflecting the cost of chartering a ship of a specified size on a particular voyage for a given cargo size. These values typically include port costs.
The proposed assessment may be used to inform freight normalizations applicable to bids, offers and trades Platts publishes for its existing Butane FOB West Med Coaster assessment, which is basis Lavera.
This decision follows a period of industry feedback. This change was first proposed in a note published Nov 12 with a launch date of Jan. 4: www.spglobal.com
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