- Latest fixture for Oct loading drops $4/t against 9 Sep tender
- Improving vessel supply, limited competition pressure freights
South Korea’s latest KEPCO tender signals a sharp correction in Australia-Korea coal freight, with the rate for later-loading tonnage falling well below the previous tender’s level. The decline suggests softer freight costs despite the cargoes being of similar size.
Polaris was fixed at $19.66/tonne (t) FIO for 80,000 t from Gladstone to Hosan for 4-10 October loading on 17 September 2026, compared with Korea Line’s $23.21/t for a similar 80,000 t Newcastle-Hadong cargo for 23 September-2 October on 9 September 2026. The latest fixture was therefore $3.55/t, or 15.3%, lower than the previous rate.
The decline in the latest fixture suggests a moderation in freight levels for October-loading Australian coal, as the rate for the Gladstone-Hosan route was significantly below the previous levels for the Newcastle-Hadong cargo in the previous tender. The correction comes despite both fixtures involving similar cargo sizes, indicating that freight costs for later-loading tonnage have softened.
The lower rate could be linked to improving vessel availability and relatively limited competition for prompt tonnage, reducing owners’ pricing leverage. In addition, the shift from Newcastle to Gladstone and differences in voyage economics have also contributed to the rate differential, BigMint understands. However, the latest fixture remains a single tender indication, and subsequent KEPCO tenders will be important to determine whether the decline represents a broader correction in Australia-Korea coal freight.
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