Dry bulk coal freight rates rise w-o-w despite less fixtures
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- Improved inquiries received for Indonesian, Australian miners
- Shortage of ships have contributed to hike freight rates
Coal freight rates increased this week for key routes. Disruption in Red Sea led South Africa's coal shipment rerouted from Europe to Southeast Asia increasing coal freight rates. Rise in enquiries from market participants in India was recorded, trade activities is dull as fixtures are still under negotiation.
Route-wise details:
- South Africa to India freight edges up w-o-w: Freight rate for coal shipments from Richards Bay terminal to Krishnapatnam, India, is currently around $20.6/tonnes (t), hiked by $0.9/t w-o-w. Resumption of enquiries from India on falling thermal coal prices and bunker prices remained range-bound contributed on increasing freight rates.
- Australia to India freight rises w-o-w: Freight rates from Australian port increased w-o-w for the Indian as well as for Chinese ports. Although there are enquiries coming from the stock-and-sale traders from India to cover their short positions in the market, a source informed. Market participants also observed that increase in freight rates might put some pressure on prices.
- Indonesia to India freight increases w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip, India stood at $12.85/t, rise by $1.6/t w-o-w. Imports from Indonesia rose post China holidays halted purchases, diverting shipment to India. The disruption in Chinese buying prompted a shift in trade patterns, benefiting Indian markets.
