Imports and Exports
Sea Freight
Domestic

Drop in coal exports makes major impact on rates

- By Staff reporter
The Richards Bay Coal Terminal, situated on the Indian Ocean coast of South Africa, is one of the leading coal export facilities in the world.
The Richards Bay Coal Terminal, situated on the Indian Ocean coast of South Africa, is one of the leading coal export facilities in the world. Source: RBCT
Comments | 0
Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

Time charter equivalent (TCE) rates for panamax and supramax vessels trading out of the key Indian Ocean region dropped by over 50% in May.

The TCE rates – a shipping industry standard used to calculate the average daily revenue performance of a vessel – in the region have dropped significantly due to reduced coal exports from South Africa (owing to a spike in prices during the second half of the month).

The price of 5 500 kilocalories per kilogram of NAR (net as received) South African coal rose by US$4.50 from May 12 to 31.

Another factor affecting rates in the region was the lower-than-expected demand for South American grain, according to a report released by S&P (Standard and Poor’s) Global Platts today (Thursday).

Platts’ TCE rate for a supramax vessel on a trip from the Richards Bay Coal Terminal to Paradip, on the east coast of India was assessed at US$5 116 per day at the end of May – falling by 53.94% from April.