1. List

[Survey]Proposals for changes in Term/Spot Combined Freight formulae in LPG reports

Since January, We, Rim Intelligence, have received various opinions from market sources about calculation formulae of Term/Spot Combined Freight. We would like to ask you further opinions here. If you have them, please fill in the form below until Apr 15*. For your reference, we put what we heard on this page.

*Initially scheduled until March 31, but extended to April 15 based on the situation.

Contact: Rim Intelligence Co. LPG team TEL: +81-3-3552-2411 Email:

Proposals from market sources and major opinions

(1)Vessel size


(3)Location of bunkering


Existing: 44,000mt


Existing: Fujairah and Tokyo


Proposal: 46,000mt


Proposal: single port at Singapore


(2)Bunker price


(4)Days of a month


Existing: average price of VLSFO and LSMGO


Existing: 31days


Proposal: single price of VLSFO


Proposal: 30.4days


Othersconsidering price of HSFO


(1) Vessel size

-We sometimes load LPG of 46,000mt onto a vessel but sometimes do LPG of 42,000-43,000mt. Thus, if you make an average of a vessel size, it would be reasonable at 44,000mt. On the other hand, it is true that new vessels can load LPG of 46,000mt. We, however, more than a half of our own vessels is at 44,000mt.

-Vessels that can load LPG of 44,000mt still account for 42% of time-charter vessels hired by Japanese importers. If Rim quote a vessel size at 46,000mt, time-charter fee should be raised to $1.00mil per month (/mth) from the existing price at $900,000/mth as new vessels have high rates to charter in a long term.

-Currently vessel size at 46,000mt is regarded as a standard.

-Vessels of 44,000mt account for only 26% of entire VLGCs. Further, as charterers want to avoid dead freight, they tend to load LPG on a vessel as much as possible. As a result, Rim should use 46,000mt as a standard vessel size to reflect the actual situation.

(2) Bunker price

-We only use VLSFO as a bunker fuel of VLGCs. With the truth under new regulations on sulfur for bunker oil by the International Maritime Organization (IMO) coming to be transparent, Rim should change the formula based on that.

-The fact is that we use only VLSFO. It is not easy for players to change a bunker fuel from VLSFO to LSMGO. Nevertheless, if VLSFO is in short supply, some players might use LSMGO.

-We use both VLSFO and LSMGO. Therefore, Rim can maintain the current formula.

-Existing formula is reasonable. Supply of VLSFO is expected to tighten going forward and more players will use LSMGO.

(3) Location of bunkering

-Rim should keep quoting bunker prices at Fujairah and Tokyo. The location of bunkering is case by case. Bunkering is not necessarily conducted at Singapore.

-There no problems at Fujairah and Tokyo. We do not have rich experience of bunkering at Singapore.

(4) Days of a month

-If you calculate time-charter fee per day, you should use 30.4 days as coefficient.

-Rim should quote 30.4 days. When we calculate monthly price of something as a daily rate, we also divide it by 30.4 days.