Decreased iron ore cargo flow out of Brazil has contributed to falling coal freight rates from the US in the last week as Capesize owners struggled to secure fixtures before the holidays.
Chartering activity out of Brazil, a major loading point for iron ore-carrying dry bulkers, was limited, shipbroker Banchero Costa said on 21 December.
The Capesize market "has already entered a correction path just a breath before the close of the year," shipbroker Allied said on 20 December.
China's increased domestic production of coal — up by nearly 5pc in November from a year prior — is another possible driver of the drop in coal rates by limiting demand for import cargoes.
Panamax rates for US east coast coal loadings had similar declines. Since 9 December, the US east coast to Japan Panamax rate dropped by 9pc to $45.75/t, while the rate to east coast India for the segment dropped by 8pc to $40.25/t, and the route to Rotterdam dropped by 6pc to $21.75/t. The US Gulf coast to Rotterdam rate fell by 6pc to $21.75/t.
The market for petroleum coke-carrying Supramaxes has been in decline over the last two weeks as well. Since 7 December, Supramax rates out of the US Gulf coast to Rotterdam and Brazil fell by 10pc to $31.50/t and $30.25/t, respectively. The US Gulf coast-Turkey Supramax rate dropped by 9pc to $36/t in the same time period.
