Argus Launches Freight Rates for Biofuels and Biofuels Feedstocks to Meet Growing Demand for Price Transparency in Energy Transition Fuel Supply Chain
In response to the increasing need for price transparency in the energy transition fuel supply chain, global energy and commodity price reporting agency Argus has announced the launch of freight rates for biofuels and biofuels feedstocks. The rise in regulatory incentives for low and zero-carbon fuels has led to a surge in trade of these commodities, resulting in shifting trade flows and vessel shortages that have caused tanker market volatility. To address this issue, Argus has introduced 60 new weekly assessed “specialised” rates covering a range of biofuels and biofuels feedstocks.
The assessments 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). These rates cover loadings from Asia to Europe on 22,000dwt stainless steel vessels and 50,000dwt IMO 2 type coated tankers, as well as coasters at European ports. The specialised transportation required for these cargoes often results in higher freight costs compared to conventional refined products cargoes. For instance, the rate to transport biodiesel across the Mediterranean is currently more than double the rate for moving conventional diesel on the same route.
Argus Chairman and Chief Executive Adrian Binks expressed enthusiasm about the new transparency provided by the company in biofuels freight rates globally. Shipping costs play a crucial role in determining the landed prices for biofuels, SAF, vegetable oils, UCO, and other low-carbon commodities, making it essential for market participants to manage their freight exposure effectively. The introduction of these new biofuels and biofuels feedstock freight rates builds upon Argus’ existing global conventional tanker market coverage and complements the company’s global biofuels market coverage.
Argus, the leading independent provider of market intelligence in the global energy and commodity markets, offers essential price assessments, news, analytics, consulting services, data science tools, and industry conferences. With a presence in 30 offices worldwide, Argus serves companies, trading firms, and governments in 160 countries, providing trusted benchmarks for pricing transportation, commodities, and energy. Established in 1970, Argus remains a privately held UK-registered company and is owned by employee shareholders and global growth equity firm General Atlantic.
For more information on Argus and its freight rates for biofuels and biofuels feedstocks, please contact:
– London: Sean Lanigan+44 20 7780 4200
– Houston: Matt Oatway+1 713 968 0000
– Singapore: Tomoko Hashimoto+65 6496 9960
Stay tuned for the latest updates and insights from Argus as they continue to provide comprehensive market intelligence for the energy and commodity sectors.
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