India: Coal vessel freight rates exhibit mixed trends amid regional demand shifts

• Sluggish trading amid Ramadan weighs on freights
• Rates edge down w-o-w on Australia-India route

Coal freights in India showed mixed trends on various routes amid regional demand disparities and vessel supply imbalances. The Pacific market remained stable to slightly bullish, supported by a steady flow of cargoes from Australia and Indonesia, with charterers actively fixing shipments to China and India.

This consistent demand helped prevent any major decline in time-charter rates, while shipowners quoted significant premiums for South Pacific cargoes heading to India, reflecting stronger demand in that trade lane. Additionally, with no major change in Panamax vessel availability in the Pacific, rates remained largely firm.

While the Asia-Pacific Panamax market initially saw healthy tonnage demand, an oversupply of vessels, particularly in the North Atlantic and Indian Ocean, added downward pressure on overall freight rates. This combination of reduced trading, uneven demand, and vessel availability imbalances contributed to the decline in coal freight rates.

Baltic indices show mixed trends w-o-w: The Baltic indices, which indicate trends in vessel demand, showed mixed trends w-o-w, suggesting volatility in demand among ship-bookers. The Baltic Dry Index (BDI) was recorded at 1,602 points on 31 March, down by 41 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) rose by 122 points to 1,497 points on 31 March against 1,375 points on 24 March. Additionally, the Baltic Supramax Index (BSI) was assessed at 995 points on 31 March, inching down by 17 points w-o-w.

Route specifications

• Australia-India rates fall: Freights from Australia to India fell by $0.2/tonne (t) w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $16/dry metric tonne (dmt). Sources informed that SAIL booked one Panamax vessel from Australia to Vizag at $18.20/t, with shipment scheduled for 20-29 April.
• South Africa-India freights increase: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $14.2/t, up by $0.6/t w-o-w. According to sources, one Panamax vessel from South Africa to Vizag was booked at $13.40/t with shipment scheduled for mid April.
• Indonesia-India freights drop: Freights for coal shipments from East Kalimantan to Paradip stood at $13.9/t, decreasing by $0.3/t w-o-w following subdued trading activity amid Ramadan holidays, leading to lower demand. Additionally, high freight levels deterred traders from concluding deals, reducing fixture volumes.