China and queues push panamax rates to record
Coal demand in the Pacific and port congestion at Australia’s export terminals have pushed the Baltic Panamax Index this week to an all-time high.
Oslo-based shipbrokers Fearnleys reported at the end of last week that a “hot” market would continue this week and noted that Pacific market gains had been rapid and strong.
Asian demand for coal as it enters its peak summer season and port congestion at Australian export terminals are the two main catalysts behind the latest surge by the panamax sector.
Market sources pointed out that congestion on Australia’s east coast is at last beginning to show signs of easing this week, despite reports yesterday by news agency Bloomberg that queues had “worsened”.
The Hunter Valley Coal Chain Logistics team said queues at Newcastle, after peaking at 79 vessels, had started to ease slightly to around 74 and were expected to fall to around 40 by the end of August.
The Simpson, Spence and Young Australian Coal Port Congestion Index remained above 22 days for the second week in a row.
Oslo-based shipbrokers Fearnleys reported at the end of last week that a “hot” market would continue this week and noted that Pacific market gains had been rapid and strong.
Asian demand for coal as it enters its peak summer season and port congestion at Australian export terminals are the two main catalysts behind the latest surge by the panamax sector.
Market sources pointed out that congestion on Australia’s east coast is at last beginning to show signs of easing this week, despite reports yesterday by news agency Bloomberg that queues had “worsened”.
The Hunter Valley Coal Chain Logistics team said queues at Newcastle, after peaking at 79 vessels, had started to ease slightly to around 74 and were expected to fall to around 40 by the end of August.
The Simpson, Spence and Young Australian Coal Port Congestion Index remained above 22 days for the second week in a row.