South Korea's KEPCO fixtures support Panamax coal demand; Australia retains freight premium

• South Korean utility awards three 80,000 t coal transport contracts
  
  
• Australia-South Korea Pan Ocean fixture points to decline in freights
  
  

South Korea remained an active participant in the Panamax coal freight market in the week ended 8 June 2026, with state-owned utility Korea Electric Power Corporation (KEPCO) awarding multiple transportation contracts for coal from both Australia and Indonesia to meet its thermal coal requirements. Market participants noted that continued procurement activity by South Korean utilities is providing steady support to Pacific Panamax demand.

Korea Electric Power Corporation (KEPCO) fixed a Pan Ocean vessel to transport an 80,000-tonne (t) coal cargo from Tanjung Kampeh, Indonesia, to Dangjin, South Korea, with loading scheduled for 16-25 June 2026. The fixture was concluded at $11.20/dmt on FIO terms.

In another tender, Five Ocean secured a contract to carry an 80,000-t cargo from Tanjung Kampeh, Indonesia, to Gangneung, South Korea, with loading between 19-23 June, at a freight of $13.36/dmt on FIO terms.

Meanwhile, Pan Ocean was also awarded a separate contract for an 80,000-t coal shipment from Gladstone, Australia, to Dangjin, South Korea, with loading scheduled between 22 June-1 July. The fixture was concluded at $18.10/dmt on FIO terms. Freights eased by approximately $1.77/dmt from the previous tender for the same route concluded on 29 May.

The fixtures once again highlighted the significant freight premium commanded by Australian cargoes over Indonesian origins. The Gladstone-Dangjin route was fixed nearly $6.9/dmt higher than the Tanjung Kampeh-Dangjin voyage, reflecting the substantially longer sailing distance and higher voyage costs associated with Australian exports.