- Latest KEPCO tender concludes by 34.3% lower from previous fixture
- Ample vessel availability, subdued coal enquiries continue to weigh on freight
South Korea’s Korea Electric Power Corporation (KEPCO) has concluded another Panamax coal tender at a sharply lower freight level, indicating that weakness in the Pacific freight market has deepened amid limited cargo demand and ample vessel availability.
KEPCO fixed Korea Line for 80,000 tonne (t) from TBCT (Newcastle), Australia, to Dangjin, South Korea, with a 15-24 August loading window, at $10.27/t FIO. The fixture marks a decline of $5.36/t (34.3%) from KEPCO’s previous Panamax fixture of $15.63/t FIO for an 80,000 t Gladstone-Taean shipment concluded in late July. While the loading and discharge ports differ, the latest fixture underscores a significant weakening in freight sentiment across the Australia-Korea coal trade.
The steep correction reflects subdued chartering activity in the Pacific basin, with limited fresh coal enquiries coinciding with comfortable prompt vessel availability. Softer bunker prices and increased competition among shipowners have also weighed on freight levels, allowing charterers to secure lower rates.
Outlook
Panamax freight on the Australia-Korea route is expected to remain under pressure in the near term unless coal procurement activity strengthens or prompt tonnage tightens. Market participants will closely monitor upcoming KEPCO tenders and broader Pacific fixture activity for signs of a potential floor in freight rates.
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