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ASIA PANAMAX DRY: Steady Indonesia-to-India coal movement supports rates

Panamax coal freight market in Asia Pacific remained steady in spite of the current holiday period in the Far East as stable activity levels were being maintained on the Indonesian-to-India routes, shipping sources said Tuesday.

“Currently, there are at least five cargoes being shown in the market at any given time. While we are talking about holidays, the Singapore-based owners are still working,” an Indian shipbroker tracking the coal freight market said.

Platts assessed the Panamax freight rate for thermal coal shipments from Indonesia’s Banjarmasin port in the South Kalimantan province to west coast India’s Mundra port at $10.25/mt and to east coast India’s Paradip port at $9.25/mt Tuesday, both up 65 cents from last Friday.

According to market sources, the firmness in the Supramax market has spilled over to the Panamax segment where owners continue to hold on to their offer levels.

“The Supramax market is talking around $14.5/mt into Kandla [from Indonesia]. Ships are asking around $12,000/day from Singapore for single time charter trips from Indonesia to India with coal cargoes,” a shipbroker said.

Among fresh Panamax deals, Swiss Singapore Overseas Enterprises was heard to have covered its 70,000 mt plus/minus 10% cargo for a voyage out Indonesia’s Muara Pantai port to the West Coast Indian port of Kandla, loading May 4-13, at $10/mt.

“There are no major changes in the Pacific [Panamax market] today. The activity is decent [at the moment],” a source with a Panamax ship-operator said.

The activity levels out of Richards Bay Coal Terminal was said to be decent with couple of Panamax fixtures said to be concluded for discharge into west coast India and east coast India ports, according to sources.

The Panamax rate for coal shipments from RBCT to Mundra was assessed at $14.25/mt and to Paradip at $15/mt Tuesday, both falling by 25 cents from last Friday’s levels.

Meanwhile, most of the Chinese and other North Asia market participants were either on holiday or had just returned to their desks.

From the metallurgical coal freight market, a fresh deal involving India’s state-owned steel maker, SAIL, was reportedly done at $15.75/mt for moving a 75,000 mt plus/minus 5%, loading May 25-June 5, from Dalrymple Bay Coal Terminal to East Coast India.
Source: Platts