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Maritime & Shipping, Wet Freight

October 29, 2024

Platts to include EU ETS carbon costs in tanker freight assessments, launching carbon-exclusive rates for two benchmark routes Jan. 2, 2025

As an update to its decision note published on Oct. 4, 2024, Platts, part of S&P Global Commodity Insights, would like to provide additional information concerning the launch of carbon-exclusive assessments for two of its benchmark routes effective Jan. 2, 2025.

The two routes will be assessed on a carbon-inclusive basis in both Worldscale points and $/mt under the current codes, in addition to a carbon-exclusive assessment for each route in $/mt published under new symbol codes as listed below.

Symbol Route Description
PFAKD10 Carbon Inclusive Dirty Tanker Aframax Freight 80kt UKC-UKC Wsc
TDACD00 Carbon Inclusive Dirty Tanker Aframax Freight 80kt UKC-UKC $/mt
TDUCG00 Carbon Inclusive Dirty Tanker Aframax 70kt USGC-UKC Wsc
TDUCF00 Carbon Inclusive Dirty Tanker Aframax 70kt USGC-UKC $/mt
CETDF00 Carbon Exclusive Dirty Tanker Aframax Freight 80kt UKC-UKC $/mt
CETDF03 Carbon Exclusive Dirty Tanker Aframax Freight 80kt UKC-UKC $/mt MAvg
CETDG00 Carbon Exclusive Dirty Tanker Freight Aframax 70kt USGC-UKC $/mt
CETDG03 Carbon Exclusive Dirty Tanker Freight Aframax 70kt USGC-UKC $/mt MAvg

The two carbon-exclusive assessments will be calculated by deducting Platts Carbon Emission Charges, as per the phase-in schedule described in the Directive 2023/959 of the European Parliament and of the Council, from the spot carbon-inclusive freight on these routes:

  • 70% of emissions reported in 2025 payable in 2026
  • 100% of emissions reported in 2026 payable in 2027

Platts Carbon Emission Charges calculations are employing baseline market norms for vessel speed and bunker fuel consumption, verified by extensive market surveys.

The calculations use the daily EU Emission Allowance Nearest-December price (EADLP00) as published by Platts. The voyage carbon emissions are based on fuel consumption and will be calculated using the carbon conversion factors published in Annex 1 of Regulation (EU) 2015/757 of the European Parliament and of the Council on the monitoring, reporting, and verification of carbon dioxide emissions from maritime transport.

These carbon conversion factors, published by Platts since Aug. 1, 2022, are:

Assessment Name Value Daily Code
Carbon Conversion Factor 0.5% VLSFO 3.151 t-CO2/T-fuel ASFOA00
Carbon Conversion Factor 0.1% MGO 3.206 t-CO2/T-fuel AMGOA00

Please send all feedback and comments to tankers@spglobal.com, pricegroup@spglobal.com, Europe_products@spglobal.com, and Europe_crude@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.