- Coal import enquiries remain supported
- Weather disruption limits movement of ships
Coal freight rates evolved stronger this week. Vessel freight rates from all key supplying nations to India have strengthened this week amidst a host of factors like improved enquiries, and port maintenance issues.
Route-wise details:
- South Africa to India freight inches up w-o-w: Freight rate for coal shipments from Richards Bay terminal to Krishnapatnam, India, is currently around $19.7/tonnes (t), up by $1.5/t w-o-w. In addition, RBCT to Navlakhi port, the freight has improved by $0.85/t w-o-w to $19.7/t. Attractive prices and smooth supplies amidst high port stocks have collectively resulted in increased enquiries for South African coal.
- Australia to India freight rises w-o-w: Freight rates from Australian port head north w-o-w for the Indian as well as for Chinese ports. Notably, Port Hay Point Berth 3 is currently undergoing maintenance shutdown from 25 February-5 March, 2024, while DBCT Port Berth 2 is scheduled for maintenance from 21 February-13 March, 2024. As per sources, the shipment is scheduled on mid March dates, a miner have fixed an enquiry for metallurgical coal. The trade activities will resume as the enquiries have supported freight to rise.
- Indonesia to India freight increases w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip, India stood at $11.25/t, an increase of $0.55/t w-o-w. In Indonesia, production and supply of coal is facing weather-related disruptions. The Indonesian ports are facing congestion which leads to delays in shipment. Moreover, the availability of spot cargoes remained limited as most miners have already sold out for the current month.
