Dry bulk coal vessel freight rates head northwards on weather disruptions

• Cyclone Kirrily's disruption has slowed down movement of ships from Australian port
  
  

Coal freight rates have risen this week. Disruption by Cyclone Kirrily in Australian port has slowed down exports movement and supported freight rates to rise. BigMint observed, coal enquiries are under negotiation, especially for smaller vessels i.e. Supramax and Panamax.

In one of the enquiries fixed a week back, SAIL has booked a Panamax vessel (cargo capacity-75,000 t) for metallurgical coal from Gladstone, Australia to Vizag, India at freight $15.15/tonnes (t). The shipment is scheduled for the period of 10-19 February.

Route-wise details:

• South Africa to India freight rises w-o-w: Freight rates for coal shipments from Richards Bay terminal to CNF Gangavaram, India, are currently at around $20/t. Transnet Freight Rail successfully restored complete coal transportation services following a collision between two trains, which disrupted rail lines impacting the North Corridor's supply. Despite this recovery, the Indian sponge-iron sector exhibited limited interest in South African coal, relying on abundant domestic supply to meet local demand.
  
  
• Russia to west coast of India: The freight cost from Taman, Russia, to the west coast of India stood at $34.5/t, while from the east coast, USA, to CNF Haldia, India, freight is at around $35.5/t. Notably, there are no immediate indications of spot demand affecting US coal prices. Suppliers are concentrating on reinforcing volumes for long-term contract sales while traders are marketing US coals on delivered index terms in Asia.
  
  
• Australia to Europe Capesize coal rate up on rerouting: Increased freight rates due to rerouting around the Cape of Good Hope could raise European coking coal and pulverised coal injection (PCI) costs, potentially boosting demand for US or Colombian material. The Capesize rate from Hay Point to Rotterdam increased this week by $3/t to $12.50/t as shipowners favoured voyages via the Cape of Good Hope rather than the Suez Canal.
  
  
• Indonesia to India freight inches up: Movement from Pacific region to India recorded lacklustre activity, absence of fresh fixtures were limited in this week. East Kalimantan port to Navlakhi port freight has remained largely stable, additionally, for Paradip port freight has also remained largely stable.