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Platts launches world’s first capesize time-charter index

S&P Global Platts has launched a new Dry Bulk Capesize Earnings Index named CapeT4 Index to reflect tonne-mile demand on four key time-charter equivalent (TCE) assessments starting 1 October 2019.

The capesize market currently lacks a weighted-average TCE index. With the introduction of the trade flow volume-based CapeT4 Index, it will capture the movement of widely consumed commodities such as iron ore and coal so as to ensure accurate representation of physical spot market trading activity.

“The existing approach to pricing dry bulk freight has remained essentially unchanged for 35 years. The shipping industry deserves better. We believe the combination of S&P Global Platts’ robust and transparent methodology and observed trade flow data from Platts cFlow will allow us to publish an index that better reflect the supply and demand fundamentals of the shipping market,” said Peter Norfolk, global head of shipping at S&P Global Platts.

The CapeT4 Index is calculated by applying an allocated weighting to the daily TCE assessments of four key round voyages, namely N China - Australia, N China - S Africa, N China - Atlantic, and the transatlantic.

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