Platts to launch two new Capesize freight assessments to China

Following market feedback, S&P Global Platts will launch two new Capesize dry bulk freight assessments, reflecting increasing liquidity of Australian thermal coal and Canadian iron ore movements into East China, effective Nov. 2, 2020.

The PC23 Capesize assessment would reflect the freight rate for 130,000 mt (plus/minus 10%) thermal coal cargoes from Newcastle, east coast Australia to Zhoushan, East China, loading 10-30 days forward from the date of publication.

The PC24 Capesize assessment would reflect the freight rate for 170,000 mt (plus/minus 10%) iron ore cargoes from Seven Islands, east coast Canada to Qingdao, East China, loading 20-40 days forward from the date of publication.

Platts first proposed to launch these assessments in a subscriber note published on Aug. 19. (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/081920-platts-proposes-launching-two-new-capesize-freight-assessments-to-china)

The volume of thermal coal from Newcastle in Australia to China hauled on Capesize ships was at 21 million mt and 25.5 million mt in 2018 and 2019 respectively, according to Platts trade flow software cFlow. Zhoushan port was the destination for the majority of thermal coal cargoes.

Canada is the world's fourth largest seaborne iron ore exporter after Australia, Brazil and South Africa, following steady increases over the last few years. China's iron ore imports from Canada stood at 7.8 million mt and 11.3 million mt in 2018 and 2019, respectively, according to Chinese customs data. Over January-June 2020, China imported 5.5 million mt of Canadian iron ore.

Both assessments would be published on a dollar per metric ton basis and would follow the Singapore publishing schedule time stamp at the Asian market close at 5:30 pm Singapore time (0930 GMT).

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