South Korea: Latest KEPCO tender signals softer Panamax freight on Australia-Korea route

• Latest fixture concluded 17.4% below previous tender
• Softer freight reflects route shift and easing Pacific market conditions

South Korea’s Korea Electric Power Corporation (KEPCO) concluded its latest Panamax coal tender at a notably lower freight level than the previous fixture, signalling some easing in freight sentiment across the Australia-Korea trade.

KEPCO fixed 60,750-72,500 tonnes (t) Gladstone, Australia-Boryeong, South Korea on Hyundai Glovis for 16-25 August loading at $16.43/dmt FIO. The fixture is $3.46/dmt (17.4%) lower than the previous KEPCO fixture at $19.89/dmt FIO, which covered a 58,000 t Abbot Point-Donghae shipment for 05-14 August loading.

The lower rate comes amid a less supportive Pacific freight environment, with vessel availability and chartering activity likely playing a greater role in determining owners’ rate expectations. Route-specific vessel positioning, cargo availability and bunker costs remain key factors influencing fixture levels.

Outlook

Panamax freight on the Australia-South Korea route is likely to remain sensitive to KEPCO’s procurement activity and prompt vessel availability. Further tender fixtures will provide a clearer indication of whether the latest decline marks a temporary route-specific adjustment or a broader easing in Pacific Panamax freight sentiment.