SUBSCRIBER NOTE: Open consultation on the methodology for Freight
Fastmarkets Agriculture is inviting feedback from the industry on the pricing methodologies for Freight as part of its announced annual methodology review process.
This consultation, which is open until June 23, 2023, seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency.
You can find the current methodology for Freight here.
As part of this consultation, following discussion with market participants, Fastmarkets Agriculture would specifically like to propose the following changes to the specifications for certain freight routes:
| Price | Current text | Proposed change |
| Freight BRA - W Med $/mt | Soybean and corn panamax freight rate from Santos in Brazil to Barcelona in Spain | Soybean and corn panamax freight rate from Santos in Brazil to Spain Mediterranean ports |
| Freight USG – W Med $/mt | Soybean and corn panamax freight rate from US Gulf to Barcelona in Spain | Soybean and corn panamax freight rate from US Gulf to Spain Mediterranean ports |
| Freight BRA - NW Europe $/mt | Soybean and corn panamax freight rate from Santos in Brazil to Rotterdam in the Netherlands | Soybean and corn panamax freight rate from Santos in Brazil to Amsterdam, Rotterdam, Antwerp or Ghent |
| Freight USG – NW Europe $/mt | Soybean and corn panamax freight rate from US Gulf to Rotterdam in the Netherlands | Soybean and corn panamax freight rate from US Gulf to Amsterdam, Rotterdam, Antwerp or Ghent |
| Freight Black Sea – NE Asia $/mt | Soybean and corn panamax freight rate from Yuzhiny in Ukraine to South China | Barley and corn panamax freight rate from Great Odesa ports in Ukraine to South China |
| Freight AUS – NE Asia $/ | Rapeseed panamax freight rate from Geraldton in Australia to South China | Wheat panamax freight rate from Western Australia to South China |
| Freight South Africa – NE Asia $/mt | Corn and wheat supramax freight rate from Durban to North Asia | Corn supramax freight rate from Durban to North Asia |
| Freight Black Sea – SE Asia $/mt | Corn and wheat supramax freight rate from Yuzhiny in Ukraine to Malaysia | Corn and wheat panamax freight rate from Great Odesa ports in Ukraine to Southeast Asia |
| Freight Black Sea - Persian Gulf $/mt | Black Sea - Persian Gulf | Wheat panamax freight rate from Novorossiysk in Russia to Iran |
| Freight Black Sea - N Africa $/mt | Wheat and corn supramax freight rate from Yuzhiny in Ukraine to Djen-Djen in Algeria | Wheat supramax freight rate from Russian Black Sea ports to Egypt |
| Freight Black Sea - W Med $/mt | Soybean and corn supramax freight rate from Yuzhiny in Ukraine to Barcelona in Spain | Wheat and corn handy freight rate from Great Odesa ports in Ukraine to Spain Mediterranean ports |
These changes would take effect from July 1, 2023.
In addition, Fastmarkets Agriculture proposes to discontinue the following assessments:
Freight Azov - E Greece $/mt
Freight Azov - E Italy $/mt
Freight Azov - W Italy $/mt
And to add the following assessments:
Freight Ukraine Danube – Marmara
These changes would take effect from August 1, 2023.
Please send responses in writing, preferably in electronic format, to the following address: pricing.ags@fastmarkets.com. Please add the respective subject heading “Freight 2023”. Please specify whether your response is confidential. Opinions offered in confidential responses may be referenced but will not be attributed in any way.
Fastmarkets will publish the outcome of this methodology review by June 30, 2023, including a summary of the feedback with the exception of those marked as confidential. Any proposals to make material changes, discontinue or launch prices will involve a separate market consultation, the length of which will depend on how substantial the change is.