Coal news and updates

Panamax freight rates on thermal coal carrying routes into India began the new year on a downward trend on excess tonnage in a quiet market Thursday.

 

Market participants, however, expected vessels to be lured towards the Atlantic in view of upcoming grain export shipments out of East Coast South America, lending support to Panamax freight rates in the Pacific.

 

Platts assessed the Panamax coal freight rates from South Africa's Richards Bay coal terminal to Paradip port on India's East Coast at $17.10/mt and to Mundra on the West coast at $16.75/mt Thursday, each down 50 cents from Tuesday.

 

A charterer was seen bidding at around $14.50-15/mt for shipment of 70,000 mt plus/minus 10% of coal from Richards Bay to Dahej on West Coast India for 10-24 January laycan, but market sources said this charterer had a reputation for aggressively priced bids and fixtures.

 

Owners' rates for this cargo were seen at around $16.50/mt, an India-based shipbroker said.

 

Platts also assessed the Panamax coal freight rates from Indonesia's Banjarmasin port in South Kalimantan to Paradip at $10/mt and to Mundra at $11.50/mt Thursday, each down 20 cents from Tuesday. 

 

Market participants foresaw little change in India's subdued demand for imported thermal coal, and continued to pin hopes on grain export shipments out of the Atlantic to help support Panamax freight rates in the Pacific. QUIET START TO 2014

 

"The Panamax market is not so strong," a Shanghai-based ship operator said. "Market participants are still on holiday, so this week is very quiet. But market rates should not be higher than pre-Christmas levels."

 

Several market participants remained on the sidelines of the market awaiting clearer direction, sources said.

 

"It has become like a love story now where one is waiting for the other to propose and take things ahead," the India-based shipbroker said.

 

Market participants continued to point to grain export shipments out of East Coast South America beginning February as a chief factor expected to support Panamax freight rates in the Pacific this month.

 

"But keep in mind, owners are more keen to kick out tonnage now while charterers have covered (their positions)," a Singapore-based shipbroker said, adding he was bearish on the Panamax freight market this month.

 

 

Source: Platts