Platts proposes to launch three new implied Supramax freight rates for thermal coal

S&P Global Platts is proposing to launch three new implied Supramax freight rates for the transport of thermal coal from Indonesia and South Africa into Thailand and Bangladesh, effective July 1, 2021.

The three proposed implied freight rates will be derived from Platts existing Time Charter Equivalent (TCE) assessments, and the routes are: Richards Bay Coal Terminal, South Africa, to Chittagong, Bangladesh (PS35); South Kalimantan, Indonesia, to Chittagong, Bangladesh (PS36); and East Kalimantan, Indonesia, to Kohsichang, Thailand (PS37).

Platts will also include Marine Fuel 0.5% prices at the relevant bunkering ports, port charges, vessel speed and fuel consumption in the calculation of the implied freight rates from TCE assessments. Platts will survey market participants to arrive at values for these that reflect standard market practice. The proposed assessments would be published on a dollar per metric ton basis.

Indonesia, the world's largest exporter of coal, exported over 304 million mt of thermal coal in 2020, with 11.1 million mt exported to Thailand, which is a 17% increase over the 9.5 million mt shipped in 2019, according to data from ship agency BTS Ltd.

Another coal loading port, Richards Bay Coal Terminal (RBCT), is the largest thermal coal export port in South Africa. South African customs showed that Bangladesh's coal imports from RBCT jumped from 213,600 mt in 2018 to 1.05 million mt in 2019. The South Asian country's imports in 2020 fell slightly to 903,663 mt.

Platts Analytics expects 14.5 million mt of thermal coal imports to Bangladesh in 2021, up 2 million mt, and Bangladesh coal import demand growth is expected to increase post 2021. Thermal coal imports to Thailand meanwhile in 2021 are forecast at 22 million mt, down 1.5 million mt year on year.

The implied Richards Bay Coal Terminal, South Africa, to Chittagong, Bangladesh freight rate (PS35) basis a 55,000 mt (plus/minus 10%) thermal coal cargo will be derived from the RBCT, South Africa to Paradip, India Supramax TCE assessment (daily price database code: CRYHB00).

The South Kalimantan, Indonesia, to Chittagong, Bangladesh freight rate (PS36) basis a 55,000 mt (plus/minus 10%) thermal coal cargo will be derived from the South Kalimantan, Indonesia to Paradip, India, Supramax TCE assessment (daily price database code: CRYFB00).

The East Kalimantan, Indonesia, to Kohsichang, Thailand freight rate (PS37) basis a 55,000 mt (plus/minus 10%) thermal coal cargo will be derived from the East Kalimantan, Indonesia to Guangzhou, China Supramax TCE assessment (daily price database code: CRYBD00).

The proposed freight rates would reflect the transactable value at the Asian market close of 5:30 pm Singapore time (0930 GMT), and would follow the Singapore publishing schedule.

Please send all comments or questions to shipping@spglobal.com and pricegroup@spglobal.com by May 14, 2021.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.