Panamax shipments half as coal imports fall

Spot panamax fixtures from east Australia to China have halved in the last two months, suggesting that Chinese hunger for imported coal is falling.
A drop in August spot fixtures to 17 vessels compared to 33 bookings in June is expected to drag down total Chinese iron ore imports in September and October, according to analysts from New York investment bank Dahlman Rose.
"We note that the easing of spot shipments may be the first sign of momentum fading in the Chinese coal import story," the bank reported.
"We pay particular attention to the spot panamax trade as gives colour on what actual tonnage should be expected to do in advance."
As bulk carriers in the spot market are fixed with loading dates several or weeks ahead, any decline in bookings during August suggest an  upcoming drop in imports.
With the average panamax ship carrying a 75,000-tonne coal cargo, the drop in the bookings in August would represent a decline of around 1m tonnes a month of coal to China, the analysts said.