Global commodity news and price reporting agency Argus Media has launched freight rates for global biofuels and feedstocks.
The new rates were introduced in response to growing demand in the energy transition fuel supply chain, the company said on 31 May.
The 60 new Argus weekly assessed “specialised” rates cover biofuels and biofuels feedstocks, including biodiesel, hydrogenated vegetable oil (HVO), ethanol, sustainable aviation fuel (SAF), palm oil, vegetable oils, used cooking oil (UCO), tallow and palm oil mill effluent (Pome).
The assessments cover loadings from Asia to Europe on 22,000dwt stainless steel vessels and 50,000dwt IMO 2 type coated tankers, and coasters at European ports.
Argus said the new assessments reflected the specialised transportation required to move those commodities, with the relatively smaller parcel size, cargo hold type and heating requirements often making freight costs higher for them compared with conventional refined products cargoes.
For example, at around US$41/tonne, the rate to transport biodiesel across the Mediterranean was more than double the rate to move conventional diesel on the route at the time of the report.
“Shipping costs are a vital component of landed prices for biodiesel, SAF, vegetable oils, UCO and other low-carbon commodities. By working with the biofuels and shipping industries, we have created a … pricing methodology that allows market participants to track and manage their freight exposure,” Argus chairman and chief executive Adrian Binks said.
Argus’ new biofuels and biofuels feedstock freight rates add to the company’s existing global conventional tanker market coverage and complement its global biofuels market coverage.
