Following the recent Worldscale Circular announcing a fixed differential applicable to the mileage steamed entering or leaving or within the Yangtze River Delta Emissions Control Area, the Baltic is still reviewing what course of action to take as it is not clear what mileage to apply and what action the general market is taking.

This would affect the TCE for TD3C and TD15 and the TD3C Forward curves. Currently the Baltic TD3C TCE calculation is based on burning IFO at discharge port, but from 2 January 2019 this will be changed to LSGO and will also include whatever eventual decision is made regarding this fixed rate differential.

Regarding the TD15 TCE, which only commenced on 20 August 2018, the TCE calculation is already using LSGO at discharge port and therefore only whatever fixed differential decision would be applied from 2 January 2019.

Your feedback or comments are invited via balticbroker@balticexchange.com