India: Coal freights remain stable w-o-w amid muted demand, chartering activity

• Some inquiries for prompt laycan dates support freights
• Supramax market in Asia-Pacific region remains stable

Coal freights for India remained largely firm w-o-w. Although there was high vessel availability in the Pacific, some fresh inquiries for prompt laycan dates kept freights from falling sharply. This equilibrium between sluggish demand for booking vessels and ample cargoes contributed to stable rates instead of steep fluctuations, particularly for India-bound vessels.

Most fresh inquiries emerged for laycans late May onward, suggesting that charterers were taking a wait-and-watch approach. This delay in chartering activity prevented rate spikes for immediate loading windows, contributing to a relatively steady freight environment. Additionally, the lack of fresh fixtures on key routes indicates that movement was limited and selective, helping to avoid drastic rate shifts.

Meanwhile, the Supramax market in the Asia-Pacific region continued to show stability due to firm time-charter rates within the Pacific basin. While spot freights remained under pressure, the relative steadiness in time-charter agreements reflects balanced expectations between charterers and shipowners. This stability in the broader Pacific market helped prevent abrupt changes in coal freights to India.

Notably, thermal coal inventories at Indian ports rose by 5.2% to 14.95 million tonnes (mnt) in week 19 of CY’25 from 14.22 mnt in the previous week, according to BigMint data. This rise indicates subdued demand for imported thermal coal in the Indian market.

Baltic indices fall except BSI: The Baltic indices, which indicate trends in vessel demand, exhibited mixed trends w-o-w. The Baltic Dry Index (BDI) was recorded at 1,299 on 5 May, falling by 122 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) dipped by 15 points to 1,353 on 15 May against 1,368 on 5 May. However, the Baltic Supramax Index (BSI) was assessed at 969 on 15 May, inching up by 14 points w-o-w.

Route specifications

• Australia-India rates steady: Freights from Australia to India remained firm w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $14.4/dry metric tonne (dmt). Freights remained stable due to limited fresh fixtures and inquiries on the Australia-India route, which kept activity subdued despite available tonnage.
• South Africa-India freights unchanged: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip remained stable w-o-w at $13.1/t, as no fresh fixtures were reported, and overall sentiment was balanced by tight vessel supply earlier.
• Indonesia-India freights drop: Freights for coal shipments from East Kalimantan to Paradip stood at $13.5/t, unchanged w-o-w, as the absence of strong demand or aggressive chartering helped prevent sharp rate fluctuations. Slight rate corrections reflected market softness, but not enough to disrupt overall stability.