The ARGUS CIF Duban, South Africa jet fuel assessment
The assessment is calculated by adding Argus spot freight assessments for 35,000t cargoes from Mideast Gulf ports to Durban, expressed in US dollars/tonne, to the Argus fob Mideast Gulf jet-kerosene quotation, converted from US dollars/bl to US dollars/tonne by a factor of 7.878 bl/tonne.
Advantages of the ARGUS CIF Duban, South Africa jet fuel assessment
South Africa is usually self-sufficient in jet fuel but often needs to import fuel when its refineries are shut down for maintenance. The vast majority of imported fuel originated from the Mideast Gulf and India, therefore the assessment provides an accurate import-parity price that uses a daily, independent freight rate. An independent daily assessment of the price for chartering a vessel to carry a 35,000t cargo of jet fuel on this route is preferable to alternatives such as using a fixed rate which is by its nature unresponsive to market changes, or relying on broker panel pricing, which can lack independence and methodological rigour.
Users of the ARGUS CIF Duban, South Africa jet fuel assessment
The assessment is widely used in term contracts between jet fuel suppliers and airlines across South African airports. It is also used by jet fuel producers, airlines, and exporters in internal price transfers, internal benchmarking.