AFP reported that record coal stocks at power plants in China, the biggest consumer of the fuel, are threatening to reverse the rally in rates for commodity carriers and diminish returns for ship owners to the lowest in more than a decade.

According to the China Coal Transport & Distribution Association and SteelHome, the utilities have 91 million tonnes in reserve and stockpiles at the largest ports come to more than 90% of capacity,

Mr Steve Rodley MD of Global Maritime Investments, which operates 64 ships, said Panamax rates will drop 48% to an average of USD 5,000 a day this quarter.

He had correctly predicted a slump in earnings for larger Capesizes in March.

Source - AFP

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