Coal vessel freight rates were mainly stable w-o-w. Notably, most traders preferred offering cargoes over securing stocks. Low demand in the domestic sponge and billet market has offset the impact of supply disruptions in South African coal and the limited availability of Australian cargoes.
A shipowner informed, ” Coal freight rates have increased due to bad weather and sudden cargo inquiries. Charterers have to pay higher rates to cover their cargoes before onset of bad weather.”
Coal stocks across 21 Indian ports inched up as of 24 July 2024, according to BigMint data. During week 29 of calendar year 2024 (CY’24), thermal coal stocks at Indian ports stood at 15.36 million tonnes (mnt), up a mere 0.79% w-o-w as compared to 15.24 mnt in week 28, as per data compiled by BigMint.
Route specifications:
- Australia-India freight rates inch up w-o-w: Freight rates from Australia rose slightly this week as inquiries were fixed for mid-August shipments. As per BigMint’s assessment, freight rates from Port Hay Point to Paradip were recorded at $16.77/dry metric tonne (dmt), inching up by $0.07 w-o-w. Meanwhile, some inquiries were heard fixed at higher freights, pushing up the rates for the routes headed north. The shipment is scheduled for mid-August dates.
- South Africa-India freights stay supported w-o-w: Freight rates from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $16.42/dmt, up by $0.02/t w-o-w. Notably, subdued long steel demand for South African portside coal have pressurized traders to offer material. Additionally, due to storm effects, shipowners have increased freights.
- Indonesia-India freights largely stable w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $13.85/dmt, down marginally by $0.2/t w-o-w. Lack of inquiries and absence of cargoes loading in East Kalimantan weighed on freight rates for the Indo-India routes.
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