Platts changes cargo size for 2 Asia Pacific Supramax thermal coal freight assessments

S&P Global Platts has amended the cargo sizes reflected on its Supramax thermal coal freight assessments for East Kalimantan, Indonesia to Guangzhou, China, and Richards Bay, South Africa to Port Qasim, Pakistan to 55,000 mt (plus/minus 10%), from 50,000 mt (plus/minus 10%) previously, effective Nov. 1, 2021.

The change is to more accurately reflect the typical thermal coal cargo volumes shipped on these routes. Ultramax and Supramax vessels typically compete for similar sized stems as both vessel classes reflect geared and grabbed ships, and Platts understands that Ultramaxes have become the preferred tonnage given their increased availability in the spot market, higher cargo carrying capacity and better fuel economics.

Platts first proposed this cargo size change in a subscriber note published Aug. 30.

Almost two-thirds of Supramax/Ultramax thermal coal spot fixtures from South Africa to Pakistan observed by Platts from January 2020 to July 2021 were basis 55,000 mt (plus/minus 10%). In addition, more than 50% of thermal coal exported from South Africa to Pakistan over the same period has been on Ultramax class bulkers, based on data from Platts cFlow trade-flow analytics software.

On the thermal coal route from Indonesia to China, spot fixtures concluded basis 55,000 mt (plus/minus 10%) have almost quadrupled during the first half of 2021, compared with the same period in 2020. By comparison, the total number of spot fixtures on the thermal coal route from Indonesia to China have just doubled over the same period, reflecting an increasing market share of 55,000 mt cargo sizes being transported on this route.

Platts may publish pricing data and fixtures reflecting other cargo sizes, but these may be normalized for assessment purposes.

The affected assessments are:

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

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