Argus Launches Global Biofuels And Feedstocks Freight Assessments

(MENAFN- PR Newswire) Growing liquidity fosters greater price transparency

LONDON, May 31, 2024 /PRNewswire/ -- Global energy and commodity price reporting agency
Argus is launching today freight rates for biofuels and biofuels feedstocks in response to growing demand for price transparency in the energy transition fuel supply chain.

Regulatory incentives for the use of low and zero-carbon fuels have driven increased trade of these commodities. Shifting trade flows, vessel shortages and bottlenecks leading to tanker market volatility mean that biofuels market participants require additional transparency to manage freight exposure.

The 60 new Argus weekly assessed "specialised" rates cover biofuels and biofuels feedstocks. These include biodiesel, hydrogenated vegetable oil (HVO), ethanol, sustainable aviation fuel (SAF), palm oil, vegetable oils, used cooking oil, 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.

The new assessments reflect the specialised transportation required to move these cargoes. The relatively smaller parcel size, cargo hold type and heating requirements often make freight costs higher for these commodities compared with conventional refined products cargoes.

For example, at around $41/t, the rate to transport biodiesel across the Mediterranean is more than double the rate to move conventional diesel on the route in today's market.

Argus chairman and chief executive Adrian Binks said: "Argus is pleased to provide new transparency to biofuels freight rates around the world as companies embrace energy transition fuels into their supply chains. 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 robust pricing methodology that allows market participants to track and manage their freight exposure."

The new biofuels and biofuels feedstock freight rates build on Argus' existing global conventional tanker market coverage and complement Argus' global biofuels market coverage.

Argus contact information

London : Seana Lanigan
+44 20 7780 4200
Email Seana

Houston : Matt Oatway
+1 713 968 0000
Email Matt

Singapore : Tomoko Hashimoto
+65 6496 9960
Email Tomoko

About Argus Media

Argus is the leading independent provider of market intelligence to the global energy and commodity markets. We offer essential price assessments, news, analytics, consulting services, data science tools and industry conferences to illuminate complex and opaque commodity markets.

Headquartered in London with over 1,400 staff, Argus is an independent media organisation with 30 offices in the world's principal commodity trading hubs.

Companies, trading firms and governments in 160 countries around the world trust Argus data to make decisions, analyse situations, manage risk, facilitate trading and for long-term planning. Argus prices are used as trusted benchmarks around the world for pricing transportation, commodities and energy.

Founded in 1970, Argus remains a privately held UK-registered company owned by employee shareholders and global growth equity firm General Atlantic.

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