Platts launches three new implied Supramax freight rates for thermal coal

S&P Global Platts has launched three new implied Supramax freight rates for shipping thermal coal from Indonesia and South Africa into Thailand and Bangladesh, effective July 1, 2021.

The three new implied freight rates are derived from existing Platts 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 has included Marine Fuel 0.5% prices at the relevant bunkering ports in the calculation of the implied freight rates from TCE assessments. Platts has also included port charges, vessel speed and fuel consumption, after surveying market participants to arrive at values for these that reflect standard market practice.

The assessments are published on a dollar per metric ton basis.

Platts first proposed to launch these implied freight rates in a subscriber note published April 23: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/042321-platts-proposes-to-launch-three-new-implied-supramax-freight-rates-for-thermal-coal

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, or RBCT, is the largest thermal coal export port in South Africa. South African customs show 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 is 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 is 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 is derived from the East Kalimantan, Indonesia to Guangzhou, China Supramax TCE assessment (daily price database code: CRYBD00).

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

Assessment Code

These assessments are published in Platts Dry Freight Wire, Platts Shipping Alert pages 628, 629, 630, 631, and in the Platts price database under the codes above.

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