Panamax coal freight rates on established routes from South Africa's Richards Bay and Indonesia to India remained stable to higher on Wednesday, following a positive trend seen this week due to higher fixture activity, sources said.
"The dry bulk market looks like it finally caught a break as it remained on the green this week, with more substantial earnings than the week prior," Greek shipbroker Intermodal said in a note on Tuesday.
Improved freight rates were being witnessed in the Atlantic basin, after an overall sluggish start to the year, the broker said.
Both Capesize and Panamaxes in the Atlantic basin saw rates improve slightly on Friday, most likely reflecting thinner tonnage availability combined with cargo interest from the US Gulf, RS Platou Markets analysts said in a daily note on Monday.
A Singapore-based source said a Panamax vessel was reportedly fixed from Richards Bay to Paradip Port on the east coast of India "in the low $14s".
However, with little activity on the South African coal, there is a possibility that vessels are eyeing South American cargoes currently, India-based Canopus Shipping said in its weekly note on Tuesday.
Platts assessed the daily Panamax freight rate from Richards Bay to India's west coast at $13.50/mt and to the east coast at $14.40/mt, unchanged from Tuesday.
Platts also assessed the daily Panamax coal freight rate from South Kalimantan to India's west coast at $8.70/mt and to the east coast at $7.80/mt, both up 10 cents from Tuesday.
"As expected, Indonesia-India coal orders showed a steady comeback with regular charterers returning to the market," Canopus Shipping said.
With a good number of vessels waiting to cater, a healthy competition begins, the broker said.
However, with fewer cargoes available on the east coast of India, vessel owners are preferring to maintain their vessels in the Pacific basin, the broker said.
In the East, activity and rates remained low as Australian miners stayed away from the market due to bad weather, although ports reopened during the weekend, RS Platou Markets said.
"Cape rates have had an upward movement in all main routes last week even with the cyclone in Australia making its presence more noticeable and limiting the activity around South Pacific," Intermodal said.
