KEPCO Panamax freight rises 13% in latest tender on Indonesia-South Korea route

• Freight rises $1.49/t from previous KEPCO fixture
• Higher rate signals firmer Panamax sentiment

South Korea’s Korea Electric Power Corporation (KEPCO) has concluded a fresh Panamax coal tender at $12.82/t FIO for an 80,000 tonne (t) cargo from Bunati, Indonesia, to Boryeong, South Korea, with Pan Ocean fixed for 18-27 September loading.

The latest freight is $1.49/t, or 13.2%, higher than KEPCO’s previous fixture at $11.33/t FIO for an 80,000 t cargo from Tanjung Kampeh, Indonesia, to Yongheung, South Korea, for 5-14 September loading.

The higher rate points to firmer Panamax freight sentiment on Indonesia-South Korea coal movements.

Outlook

Indonesia-South Korea Panamax freight could remain firm as KEPCO continues coal procurement. Further tender activity, vessel availability and coal cargo enquiries will remain key indicators for freight direction in the coming weeks.