Savage Resource | Logistics / Freight – Land & Sea
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Logistics / Freight – Land & Sea

Overview: The market is volatile and is moving $2-4/t up/down across vessel sizes and basins each week. Rates remain bullish and are at least 30% higher than last year globally. North Sea coater rates are relatively stable, but remain high compared to last year.  Dry bulk demand is strong for anthracite and coke. In other smaller basins, Black Sea and Med, rates are also firm and front haul day rates in the Black Sea/Med $11.5-12k are/were on the ask-side with  bids at $10.75-11k – equivalent to high-teens. Supras to India ex-Russia ports are $45-47/t. The container market in Europe continues to see a wide range of rates, so no change from $550-650 on the last IW2E. UK-Continent trucking costs are averaging €40-50/t and have not moved since the last update.

Netherlands: The Port of Rotterdam Authority (PRA) dismissed reports of a coal free port by 2030 after the municipal council announced it as an aim. Holland announced earlier in the year plans to become coal free by 2030. Rotterdam receives thermal and coking coal destined for onward distribution to markets including Germany. Virtually all of the coking coal is sent to steel plants in Germany.

Panama: Panama’s $5 billion investment to expand its century old canal has paid off as shipping lines send more USA bound cargoes through the passage rather than through the Suez Canal. Ships, almost three times as large as the ones crossing before the expanded locks opened in June 2016, are bringing tens of millions of additional dollars in tolls for east coast US ports.

Saudi Arabia: Saudi Arabia’s King Abdullah Port (Red Sea), recently signed an agreement with AM-Steel, a company specializing in operating ports and handling steel shipments, to manage its first bulk and general cargo terminal berth for a period of 25 years.

South Africa: There have been delays at the Richards Bay Coal Terminal due to equipment failure and bad weather. South Africa’s ports are expecting an increase in tariffs this December.

USA: A county hearing examiner has denied the two shoreline permits Millennium Bulk Terminals needs for its $680 million coal-export terminal project on the Columbia River in Washington State.

 

 



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