South Korea: KEPCO secures Panamax vessel for July Newcastle coal shipment

• Australian cargo supports vessel demand
  
  
• Longer haul route boosts tender levels
  
  

South Korea's state-owned utility Korea Electric Power Corporation (KEPCO) remained active in the seaborne coal market, fixing a Panamax vessel for an Australian thermal coal shipment, with the longer voyage distance resulting in significantly higher freight levels compared with recent Indonesia-origin fixtures.

In its latest tender, KEPCO fixed the vessel Pan Ocean to transport an 80,000 tonne (t) coal cargo from Newcastle, Australia, to Boryeong, South Korea. The cargo is scheduled to load between 7-16 July 2026, with the fixture concluded at $16.98/dmt on FIO terms.

The freight level is substantially higher than KEPCO's previous fixture of $9.68/dmt for an 80,000 t cargo from NPLCT, Indonesia, to Yongheung, South Korea. The increase primarily reflects the longer Australia-South Korea voyage and higher voyage costs associated with Newcastle-origin shipments.

Market participants noted that Australian coal continues to attract South Korean utility interest owing to its quality advantages and suitability for blending requirements. However, vessel availability in the Pacific basin remains comfortable, limiting broader upside momentum in Panamax freight rates despite steady utility procurement activity.

Looking ahead, freight direction is expected to remain closely tied to cargo flow developments from Australia and Indonesia, alongside changes in regional vessel supply.