Over the last decade as prices became more transparent benchmarking of bunker buyers and brokers performances was a relatively simple task. For the most part the focus has been on the discount achieved to particular indexes whether it is Platts / Ship & Bunker / Clearview or others. Secondly, the timing of the enquiry in the market has been monitored along with claims ratios/operational performance of particular suppliers.
IMO2020 will throw away the rule book when it comes to benchmarking. Firstly, prices will become more opaque. We have recently seen the first attempt at pegging 0.5% Sulphur fuel oil prices by Petroleum Argus whose methodology is an arbitrary blending formula. They should be commended for attempting to bring some clarity but, we all know depending on the blending components the pricing is anything but linear for future 0.5% Sulphur product.
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