SUBSCRIBER NOTE: Open consultation on the methodology for Freight
Fastmarkets Agriculture invited feedback from the industry on the pricing methodology for Global Freight, via an open consultation process between May 26 and June 23, 2020. This consultation was done as part of our published annual methodology review process.
This consultation sought 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.
No feedback was received during the consultation period and therefore Fastmarkets will now implement the changes proposed as part of the consultation.
Specifically, Fastmarkets Agriculture proposed the following changes to the specifications for certain freight routes:
| Price | Current text | New text |
| 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 Greater Odesa ports in Ukraine to South China |
| Freight AUS – NE Asia $/mt | 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 Greater 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 Greater Odesa ports in Ukraine to Spain Mediterranean ports |
These changes took effect from July 1, 2023.
In addition, Fastmarkets Agriculture proposed 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 will take effect from August 1, 2023.
For more information on this consultation please email pricing.ags@fastmarkets.com.
Please add the respective subject heading “Freight 2023.”