A lack of fresh cargoes out of East Coast South America, NOPAC and the Pacific has led to a steady build-up of tonnage in both basins. The market has started to favour the charterers as ship-owners were seen competing for the same cargoes yet again. Charterers were able to secure tonnage on an APS basis especially in the Pacific basin. The rate for a round voyage for an eco KMAX opening in the Japan-Korea range to the North Pacific region was around the low $7,000s/day range.

The market in the Pacific witnessed some coal loading activity from the East Coast of Australia. PMAX vessels on a DOP basis opening in North China heading from Australia to China and Australia to India were around the high $4,000s/day range. However, PMAX coal flows from Indonesia to China have been slow with very few fixtures being reported in the past week or so but market participants are expecting them to gradually increase once the holy month of Ramadan ends. A PMAX vessel on a DOP basis opening in South China heading from Indonesia to China was rated around the mid $5,000s/day range (flat w-o-w).

A dearth of enquiry in the US Gulf and Pacific market led to another depressing week in the UMAX and SMAX market. A NOPAC round voyage for a SMAX vessel on a DOP basis opening in the CJK area achieved about mid $6,000s/day. East Coast South America business was lacklustre yet again with a 63,000 DWT UMAX fixed delivery Vitoria for a trip to India at $11,750/day and $185,000 ballast bonus. Steel trips to West Coast India from Korea basis North China delivery for a 58,000 dwt paid around high $6,000s/day and mid $3,000s/day to SKAW-CONT from Korea basis CJK delivery.

The fall in Chinese coastal freight rates coupled with the Dragon Boat festival holidays added downward pressure to the Indonesia-China SMAX coal route. A SMAX vessel for coal on a DOP basis opening in the Singapore range heading from Indonesia to China was in the low $5,000s/day range. The Indian Monsoon season coupled with the Indonesian public holidays in June could drastically reduce exports to the sub-continent for the next month or so.  SMAX vessels for coal on a DOP basis opening in Singapore heading from Indonesia to India are being rated in the low $7,000s/day range. 

South African coal exports to India dropped m-o-m yet again. Tonnage count in the Indian Ocean was very much dependent on the number of owners ballasting there – w-o-w it has not changed much, however demand between PG/East Coast Africa and India has been very thin.  SMAX vessels on a DOP basis opening in ECI/WCI for the RBCT to India coal route are in the low $4,000s/day range, while the PG to India route is currently around the low $6,000s/day range. PMAX vessels on a DOP basis opening in ECI/WCI doing the RBCT to India route are around the low $5,000s/day range.