India: Coal vessel freight rates rise w-o-w on seasonal demand, vessel shortage

• Increase in coal imports has supported freights
• Reduced vessel supply in the Pacific driving rates higher

Coal freights in India increased w-o-w amid limited availability of Panamax vessels in the Pacific region. As shipowners capitalize on strong demand, they can negotiate higher freight rates. With fewer ships available for immediate charter, especially in high-traffic coal routes from Australia and Indonesia, charterers have little choice but to accept increased freight costs.

Indian importers often increase coal purchases ahead of peak summer months to meet rising power demand. This seasonal stockpiling adds pressure on available shipping capacity, leading to higher freight rates. Additionally, industries such as steel and cement require a steady supply of metallurgical and thermal coal, further boosting demand for shipments.

Notably, thermal coal inventories at Indian ports dipped 0.9% w-o-w to 11.72 million tonnes (mnt) in week 12 of CY’25, down from 11.83 mnt in the previous week, as per BigMint data.

Baltic indices climb w-o-w except BDI: The Baltic indices, which indicate trends in vessel demand, increased w-o-w, indicating higher demand among ship-bookers. The Baltic Dry Index (BDI) was recorded at 1.643 points on 24 March, down by 26 points w-o-w. However, the Baltic Panamax Index (BPI) rose by 10 points to 1,375 points on 24 March against 1,365 points on 17 March. Additionally, the Baltic Supramax Index (BSI) was assessed at 1,012 points on 24 March, climbing up by 82 points w-o-w.

Route specifications

• Australia-India rates rise: Freights from Australia to India rose by $1.2/tonne (t) w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $16.2/dry metric tonne (dmt). Freight rates increased due to strong cargo demand limited Panamax vessel availability, and firm market sentiment driven by stable overall cargo volumes.
• South Africa-India freights increase: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $13.6/t, inched up by $0.2/t w-o-w. Rates rose amid steady Indian demand for thermal and metallurgical coal, coupled with constrained vessel availability, leading to higher freight costs for shipments from Richards Bay.
• Indonesia-India freights climb: Freights for coal shipments from East Kalimantan to Paradip stood at $14.2/t, increasing by $0.3/t w-o-w. Despite lower trading activity, stable demand for Indonesian coal shipments to India has supported freight rates.