Panamax freight rates on established thermal coal routes hovered in the same range Wednesday as was seen last week, with market participants hoping higher east coast South America rates will boost Panamax rates in the Pacific.
Among cargoes heard fixed in the Pacific were two Panamaxes from Samarinda port to India's Dahej port at $9.30/wmt for end-May dates, and another to Ennore port on India's east coast at $7.80/wmt. A third was heard fixed at $8.50/wmt, also to Ennore port.
A SAIL cargo was heard put on subjects at $15.18/mt from Australia's Darymple Bay to east coast India for June 1-10 dates.
Platts on Wednesday assessed the market from Banjarmasin port on India's South Kalimantan province to Mundra on India's west coast at $9.75/mt, falling 25 cents from Monday.
The route from South Kalimantan to Paradip port on India's east coast was assessed at $8.75/mt, also down 25 cents from the previous assessment day.
"It was quiet this morning with people coming back from holiday yesterday," one Panamax broker said. "A bit more was going on in the afternoon [Wednesday]; Indonesia round voyage and [stems from] east coast Australia to India seem to be dominating the activity."
The South Africa market was mostly quiet, with many players heard concluding deals before the Richards Bay coal terminal shuts for maintenance in the second half of May, market sources said. Charterers were rating at about $14/mt on cargoes from South Africa's Richards Bay coal terminal to Mundra port, a charterer-operator said.
A fixture was heard concluded at $14.50/wmt from Richards Bay coal terminal to west coast India.
Platts assessed the thermal coal Panamax rate from Richards Bay to Mundra port at $14.50/mt, climbing 25 cents from Monday. The rate from Richards Bay to Paradip port was assessed at $15/mt, down 25 cents from Monday.
Market participants were mixed on where the market was headed, with some believing owners could start holding onto higher numbers, buoyed by higher east coast South America grain freight deals, where a Kamsarmax was heard fixed at $15,500 plus $500,000.
"If there is more east coast South America business, owners could get more optimistic and stick to their rates," another broker said, but added that he has yet to see the effects of that in the Pacific.
Others, however, seemed to think higher activity in the Pacific in recent weeks meant that rates have hit a ceiling, and could start trending down.
"Indonesia/China and India has been a bit active, with a bit more cargo, as is Australia/India," a charterer-operator said. "After these are covered, the market might go down again, but for now it's still quite firm."