India: Coal vessel freights head south w-o-w amid thin fixtures

• Weak coal demand leads to vessel oversupply
• Baltic Panamax Index drops 239 points w-o-w

Coal freights in India decreased w-o-w amid weak demand and limited fresh cargo inquiries in the Pacific region. With trading activity thin and prompt loading cargoes lacking replenishment, shipowners faced difficulty securing fixtures at previously higher levels. An oversupply of available tonnage, coupled with fewer coal cargoes being booked for near-term shipments, exerted downward pressure on freights.

However, the slight easing of bunker fuel costs helped offset operating expenses for vessels, but it was not enough to support freights amid the broader weakness in coal trading activity. This combination of supply-demand imbalance and subdued sentiment in the Pacific was a key driver behind the fall in coal freights to India.

Notably, thermal, coal inventories at Indian ports rose slightly by 0.2% w-o-w to 12.33 million tonnes (mnt) in week 15 of CY’25, from 12.31 mnt in the previous week, according to BigMint data.

Baltic indices fall w-o-w: The Baltic indices, which indicate trends in vessel demand, declined w-o-w, suggesting a drop in interest among ship-bookers. The Baltic Dry Index (BDI) was recorded at 1,274 points on 14 April, falling by 215 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) dropped by 239 points to 1,186 points on 14 April against 1,425 points on 7 April. Additionally, the Baltic Supramax Index (BSI) was assessed at 939 points on 14 April, edging down by 32 points w-o-w.

Route specifications

• Australia-India rates inch down: Freights from Australia to India dipped by $0.3/tonne (t) w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $14.6/dry metric tonne (dmt). Sources informed that SAIL booked two Panamax vessels from Australia to Vizag at $14.75/t, with shipment scheduled for 10-19 May.
• South Africa-India freights fall: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip decreased by $1.7/t w-o-w to $12.5/t. The fall in freights from South Africa to India was due to limited coal cargo demand from Indian buyers and increased vessel availability in the region.
• Indonesia-India freights remains stable: Freights for coal shipments from East Kalimantan to Paradip stood at $13.3/t, steady w-o-w, due to reduced cargo demand and limited fixing activity in the Indian Ocean. Charterers adopted a wait-and-watch approach, leading to a build-up of available tonnage.