Columbian Coal Exports
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels.
In Jan-Aug 2023, total global seaborne coal loadings increased by a whooping +8.5% y-o-y to 845.8mln t (excluding cabotage), based on vessel tracking data from Refinitiv.
This was well above the 779.2 mln t loaded in Jan-Aug 2022, the 763.0mln t in Jan-Aug 2021, and the 736.0mln t in Jan-Aug 2020.
It was also just a shade below the 853.6 mln t loaded in Jan-Aug 2019.In Jan-Aug 2023, exports from Indonesia increased by +18.3% y-o-yto 285.4 mln t, whilst from Australia were up +0.6% y-o-y to 229.4 mln t.
From Russia exports increased by+0.5% y-o-y to 121.6 mln t in Jan-Aug 2023, from the USA increased by +16.7% y-o-y to 52.2 mln t, and from South Africa increased +8.7% y-o-y to 45.4 mln t.
Shipments from Mozambique surged by +43.6% t-o-y in Jan-Aug 2023 to a record 20.2 mln t.
Seaborne coal imports into Mainland China jumped by +69.9% y-o-y to 227.2 mln t in Jan-Aug 2023, whilst imports to India increased by +0.4%y-o-y to 141.5 mln t.
Imports to Japan declined by -6.9%y-o-y to 106.9 mln t in Jan-Aug 2023,to South Korea by -4.5% y-o-y to75.2 mln t, to the EU -17.2% y-o-y to 61.4 mln t, to Vietnam increased by+33.7% y-o-y to 30.2 mln t.
Colombia is the world’s sixth largest seaborne exporter of coal, and the second largest in the Americas after the USA.
Export volumes from this South America country have steadily declined in the last decade, as it was being penalized by decreasing coal demand in the Atlantic basin, and by its distance from the more resilient Asian markets.
This however turned around somewhat last year given the current strength of European demand.
Total seaborne coal exports from Colombia in the 12 months of 2021 reached 56.3 mln tonnes, +12.8% y-o-y, according to Refinitiv vessel tracking data.
However, this was primarily a rebound from a -32.7% y-o-y slump in 2020, when export volumes were as low as 49.9 mln t, and is still a far cry from the 74.2 mln t exported by Colombia in the full year 2019.
The two main ports Therefore is currently the main destination for shipments from Buenaventura, with South Korea,India and Chile also receiving some coal from the port.
Nevertheless, the main destinations
from Colombia are of course in Europe and the Mediterranean.Coal exports from Colombia to the EU increased by +111% y-o-y in Jan-Dec 2022, to 17.8 mln tonnes. This was the highest volumes sent to Europe since 2018.Shipments to Turkey however declined by -28.2% y-o-y to 9.4 mln tonnes in Jan-Dec 2022.Volumes to China were down -83.1%y-o-y to just 0.7 mln t in Jan-Dec 2022, from 4.2 mln t in 2021.Shipments to Chile declined by-27.2% y-o-y in 2022 to 4.7 mln t,but to Mexico increased by +314% y-o-y in 2022 to 2.6 mln t.
Capsize market
Atlantic and pacific basin The Capesize market continues on the rise.Firmer fixtures have been reported from both basins. The Pacific markethad quite strong activity withincreasing rates and the Atlanticcontinued to witness improved ratesas well with the Capesize marketmaintaining its strength. With this,the overall outlook remainsoptimistic.On the period front the CSCPreeminence (208 801 dwt | 2020built) was fixed basis deliveryDangjin on 12th October for 9/11months period at $24,000/d.In the Pacific, FMG fixed two TBNvessels to load their cargoes of160,000mt +/- 10% iron ore fromPort Hedland to Qingdao, laydays20/22 October and 21/23 October,respectively at freight rates of$10.65/mt and $11.05/mt.The MV Santa Barbara (179,492 dwt| 2015 built) was fixed to Oldendorfffor a similar cargo as above, laydays20/22 October at $11.00/mt.Vale fixed a TBN vessel to load itsstem of 180,000mt +/- 10% iron orefrom TRMT to Dung Quat, laydays10/12 October in the high $7s/mt.Multimax fixed the MV Haralambos(179,922 dwt | 2009 built) openZhoushan for one time charter tripvia Newcastle to China at around$22,000/d.Richland fixed the MV Star Orion(171,908 dwt | 2005 built) basisdelivery Fujian, prompt (ex-drydock),for one timecharter trip via EastCoast Australia to Singapore-Japanrange in the region of $19,000/d.Oldendorff fixed the MV Golden
Future (175,861 dwt | 2010 builtscrubber-fitted) basis deliverySingapore early October for atimecharter trip via Brazil and WestAfrica to the Far east, at $23,500/dplus a gross ballast bonus of $500,000.
In the Atlantic basin, Classic fixed theMV Natty (176,000 dwt |2011 built)to lift a cargo of 180,000mt +/- 10%iron ore from Itaguaí to Qingdao,laydays 26 October onwards at$25.50/mt.CSN fixed the MV Samjohn Legacy(180,736 dwt | 2010 built) to lifttheir cargo of 180,000mt +/- 10%iron ore from Itaguaí to Qingdao,laydays 23/25 October at $25.00/mt.Trafigura fixed the MV Cape Astra(169232 dwt | 2009 built) basis ETATubarão 10/11 November, at a rateof $25.00/mt.
The MV Empress Mistral (180,896dwt | 2020 built) was fixed toMercuria to lift a stem of 185,000mt+/- 10% iron ore from Tubarão +West Africa to China, laydays 10/14November at a freight rate of$26.00/mt.
Vale fixed a TBN vessel to load theircargo of 170,000mt +/- 10% iron orefrom Tubarão to Iskenderun plusEregli, laydays 20/30 October at afreight in the low $17’s/mt.The MV Alpha Treasure (209260 dwt| 2022 built) was fixed by TreasureBoost to lift a cargo of 190,000mt+/- 10% iron ore from Freetown toQingdao, laydays 24/28 October at afreight of $25.15/mt.From South Africa, Richland fixed aTBN vessel to load a stem of170/175,000 mt iron ore fromSaldanha Bay to Qingdao, laydays 31October ~ 2 November at$18.40/mt.
Panamax market
Atlantic basin
The first week of Q4 in the AtlanticBasin was characterized bydecreasing activity from bothnorthern and southern regions withscarce activity that brought ratesdown.
P1A_82 lost approximately $1,500/dcompared to previous week, closingthe week at $15,930/d – a 2018Kamsarmax was reported fixed for atrip via US EC with coal at $16,200/ddop Amsterdam.P2A_82 followed the negative trendlosing $2,000/d due to a lack ofminerals demand.Regarding South American regions,an overaged Panamax was reportedfixed by a major grain house at$18,000/d for a trip to Skaw/Gib withgrains.
P6_82 suffered a $1,000/d loss with tonnage count remaining pretty highcompared to the number of cargoes.On aps basis, a spottish 2012Kamsarmax was reported fixed at$16,000/d + $ 700,000 gbb for a tripvia Santos to China.
Pacific basin
The Golden Week in many Asian Countries, and in China in particular,severely reduced the activity Pacific with the exceptions of somegrain houses still active on NoPac And Australian coal exports into India.The Indonesia market substantially silent.
Crude tanker market
The VLCC market kept falling During Asian holidays, down to WS36.5 for270,000 mt MEG-China and to WS41for 260,000 mt W Africa-China.Suezmax rates from W Africa moved higher, the last done by Total exDjeno off 25 Oct at WS70, but with afew cargoes still in the market ratesare expected to move higher,particularly from Nigeria.At the same time rates moved up toWS70s level for USG TA runs.From Basrah, rates for 140,000 mt toMed moved from WS55 to WS57.5,done by Petroineos and Eni Respectively off 27 Oct and might move further up as a couple of cargoes were still in the market.LRates for MEG-F East remainedaround WS100, as VLCCs started tocompete for Suezmax stems (andSuezmaxes started to compete forAframax stems).
The Aframax market closed aroundWS110 level for CrossMed, Ceyhancargoes were covered up to 17 Oct,whilst a couple of fixtures at WS130were done ex CPC on Friday.In NW Europe rates moved up toWS100 level.American market finally recovered upto WS120for 70,000 mt USG-UKCM.East of Suez rates were rising once more, up to WS155 level for MEG-FEast.
New building orders
Eastern Pacific ordered to Japan Marine United 2 x 211,000 dwt Newcastlemax to be delivered in2025.
In the same segment, CMB controlled Bocimar added 2 x210,000 dwt Newcastlemax to the ones already on order from Qingdao Beihai.
The price was reported at $66 mln apiece and deliveries are expected in 2027, the vessels will be dual-fuel ammonia ready.
In tanker market, the most notable news was the decision of Hengli H.I.to build 2 x 306,000 dwt VLCC for their own account, delivery expected in June 2026 and price undisclosed.
China based Zhejiang Xinyihai Shipping chose Ningbo Xinle to build a 8,500 dwt chemical tanker with delivery set for September 2024 and the price was not reported.
Second Hand sales
Starting from the Capesize segment,the AM GIJON 178,000 dwt 2011Mitsui was rumoured sold to Greeks in excess of $26 mln.Last week the SUIGO 174,000 dwt 2011 Namura was reported sold for $23.5 mln.
The Japanese Kamsarmax LORD STAR 83,000 dwt 2013 Sanoyas (scrubberfitted) was reported sold to German owner Blumenthal for $23.8 mln while the Chinese built YANGTZE XING JIN 81,000 dwt 2012 Guangzhou Longxue is rumoured sold in the region $20 mln.
Turkish owner GSD Holdings seems to have found a buyer for its Ultramax ZEYNO 63,000 dwt 2014 Yangzhou Dayang at $22 mln; as a matter of comparison, at the end of August the HANTON TRADER III64,000 dwt 2014 Jiangsu Hantong was reported sold to Chinese Buyers For $20.3 mln.
The Japanese SANTA VITORIA 61,000dwt 2012 Iwagi Zosen was rumoured sold to undisclosed buyers at $20.5mln.
Angelopulos’ Metrostar Management sold 2 Aframax: CRUDEMED and CRUDESUN both 115,000 dwt 2018 Daehan at region $70 mln each to undisclosed Buyers.The two sister ships were ordered at a price around $43 mln each.
The price is rather firm, but vessels both passed SS during the last summer and the availability of modern crude tankers is almost zero.
CHEMTRANS AEGAN 76,000 dwt 2007 Dalian seems to have been committed to undisclosed Buyers at a price around $22 mln.
In the MR segment the LACERTA and the BORA BORA both 49,000 dwt 2016 SPP were sold en bloc for $40.5mln each to Turkish Buyers.
A Chinese built ship of same age/size– the SUNNY APATITE 49,000 dwt 2016 Guangzhou was sold in during the second half of August at $34.5 mln.Another modern MR, the TFR BERGEN 49,000 dwt 2015 Hyundai Vinashin (scrubber fitted) was reported sold to undisclosed Buyers at a price of $37 mln.
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