South Korea: Australian route retains premium in KEPCO's latest Panamax fixtures

• Indonesia fixture underscores softer Pacific freight sentiment
  
  
• Australian voyage commands premium on longer haul distance
  
  

South Korea's state-owned utility Korea Electric Power Corporation (KEPCO) remained active in the Panamax coal freight market, securing vessels for both Indonesian and Australian thermal coal shipments, highlighting the continued flow of utility demand despite a relatively well-supplied Pacific vessel market.

In its latest fixtures, KEPCO booked a Korea Line vessel to transport an 79,000-80,000 tonne (t) coal cargo from Taboneo Coal Terminal (TBCT), Indonesia, to Samcheonpo, South Korea. The cargo is scheduled to load between 21-30 June and was fixed at $9.12/dmt on FIO terms.

Separately, KEPCO fixed a Pan Ocean vessel for an 80,000 t coal shipment from Gladstone, Australia, to Dangjin, South Korea, with loading scheduled for 10-14 July. The fixture was concluded at $15.70/dmt on FIO terms.

The Indonesia-origin fixture marked a decline from KEPCO's previous NPLCT-Yongheung tender concluded at $9.68/dmt, reflecting continued pressure on shorter-haul Pacific routes amid ample vessel availability. Meanwhile, the Gladstone-Dangjin fixture was fixed at $15.70/dmt, lower than KEPCO's earlier Newcastle-Boryeong tender at $16.98/dmt for July loading. Market participants attributed the softer Australian freight level to easing vessel sentiment and differences in voyage economics between the two loading ports.

The Australian-origin freight level was around 72% higher than the Indonesia-South Korea route, reflecting the considerably longer sailing distance and higher voyage costs associated with east coast Australian exports, BigMint noted.

Market participants noted that Indonesian cargoes continue to provide steady employment for prompt Panamax vessels in the Pacific, although abundant tonnage availability has kept freight levels under pressure. In contrast, longer-haul Australian movements continue to command stronger returns despite broader market weakness.

Looking ahead, freight direction in the Pacific is expected to depend on the pace of utility procurement from Northeast Asia and cargo availability from key coal exporting regions, particularly Indonesia and Australia.