Panamax coal freight rates on established routes from South Africa's Richards Bay and Indonesia to India jumped Friday as grain activity on the Atlantic continued to lend support, sources said.
Since activity on the west coast of India was weak, with some ports closed due to the ongoing monsoon season, vessel congestion was building up at Paradip port on the east coast due to its proximity to several end users, a market source said.
"As far as Panamax rates are concerned, the numbness experienced in the Pacific basin, where coal cargoes from Indonesia are still the main source of fixtures, is still being counterbalanced by slightly firmer activity in the Atlantic," Greek shipbroker Intermodal said in its weekly note Tuesday.
There is good demand for short-period ships in the Atlantic, paying around $10,500/day, broker Fearnleys said in its weekly note Wednesday.
"The most exciting action over the last week has been in the Atlantic. Here the rates are slowly and steadily pushing upwards as we are witnessing a much healthier summer this year compared to last year."
"The front-haul market is pretty quiet, though it seems there are still some volumes of grain left in [the east coast of South America] to be shipped over the summer," it added.
The average trans-Atlantic round voyage now pays around $10,000/day, but fixtures as high as $13,500/day have been reported for ships that are in favourable positions, the broker said.
"The Pacific is struggling to recover from the low levels we have seen out there for quite some time," Fearnleys said, adding that the Pacific round voyage paid only around $6,500/day.
However, tonnage is starting to build again and the list is expected to grow as vessels that have suffered prolonged delays due to congestion at the start of the grain season start to arrive, broker Braemar Seascope said in its weekly note Thursday.
The softening of front-haul time charter rates from South America has paused for the time being, with a number of grain charterers in the market for very early August loaders, the broker said.
On the back of limited supply of tonnage for August 1-5 dates, rates have been steady, with fixing levels hovering close to $14,500/day plus $450,000 ballast bonus, the broker said.
"However, once the early requirements are cleared, hire levels are expected to start easing again," Fearnleys said.
Platts assessed the daily Panamax freight rate from South Kalimantan to India's east coast at $8.65/mt, up 25 cents on the day and up 45 cents on week, and to the west coast at $9.95/mt, up 25 cents from Thursday but flat on week. Platts also assessed the daily Panamax freight rates from Richards Bay to India's east coast at $15.50/mt and to the west coast at $15.20/mt, both up 25 cents from Thursday and up 45 cents on week. CAPESIZE, SUPRAMAX HOLD FIRM
A Dubai-based shipping source reported a fixture for a Supramax vessel at $12,000/day for re-delivery in the east coast of India.
He said charterers were quoting $10.50-11/mt from South Kalimantan to the east coast of India, with one fixture earlier this week concluded at $11.45/mt.
"There are several cargoes for Indonesia to India but major owners are still reluctant for this direction due to monsoon season," Fearnleys said.
The Far East market is largely inactive, with July-dated cargoes remaining unfixed as there is a gap between what owners are aiming for and what charterers are willing to pay, the broker added.
Rates strengthened for Capesize vessels too, especially in the Atlantic, where ships became scarce, the broker said.
"In the Pacific the majors have not been very active, resulting in more ships starting to ballast. It will be interesting to see if all these can be absorbed, as of now it seems they will be," Fearnleys said.
