Dry bulk coal freight rates rise w-o-w post CNY holidays

Coal freight rates improved on strong sentiment this week. In the Indian Ocean, pockets of demand were seen on the South-Africa to India coal route. On the other hand, enquiries from Australian port have seen a rise after the resumption of port operations.

Route-wise details:

• South Africa to India freight rise w-o-w: Freight rates for coal shipments from Richards Bay terminal to Krishnapatnam, India, are currently at around $18.2/tonnes (t), hiked by $1.5/t w-o-w. In addition, RBCT to Navlakhi port, the freight has improved by $1.75/t w-o-w to stand at $18.85/t. Notably, Indian buyers' interest in South African-origin coal improved, driven by attractive prices and increased inquiries from industries like cement and steel. Despite the slow demand, transactions are still occurring.
  
  
• Australia to China freight slight up w-o-w: Freight rates from Australian port stayed largely stable w-o-w for the Indian as well as for Chinese ports. Following China's Lunar New Year, there is a rise in freight from Australia to China due to the restocking of coal reserves depleted during the festivities. China's need to replenish these reserves for energy and industrial purposes drives increased coal imports from Australia, a major supplier, post-holiday.
  
  
• Indonesia to India freight inches up w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip, India stood at $10.70/t, increase by $1.35/t w-o-w. Weather-related disruptions caused some delays in loading last week in Indonesia. As a result, many miners in the Sumatra and South Kalimantan areas faced disruptions that have led to delays in coal deliveries. The supply disruptions in Indonesia are also causing Indian buyers to explore alternative sources for their supply. However, the supply from Indonesia has relaxed compared to last week.