- Coal freights rise amid bunker volatility and geopolitical tensions
- Limited fixtures, but deals concluded at higher levels amid tight vessel supply
Dry bulk coal freight rates extended their strong w-o-w gains as of 10 March 2026. These were supported by elevated bunker prices and broader macro uncertainties linked to the ongoing Iran-Israel-US conflict, leading to very few fixtures but at higher levels, BigMint understands.
“Market is getting crazy. Vessel hire is very high and bunker prices are increasing every day. Today the Brent fell to around $92 but started rising again. Not very sure what’s going to happen in the near future,” a ship-operator source said.
Another participant noted that price discovery has become increasingly difficult amid bunker price volatility. “Frankly, there is no clear rate right now. It’s difficult to comment because of the bunker situation. Many participants are refraining from quoting, and only those with hedging tools for forward cover are able to fix,” the source said.
“There is effectively no clear freight rate in the market at the moment, as many participants are refraining from quoting altogether. Some vessel owners are instead referring to BSS bunker adjustment clauses due to the sharp volatility in bunker prices. While market participants are asking for numbers, the core issue right now is bunker availability and pricing. For instance, bunker prices surged to around $1,150 yesterday, but even at those levels suppliers are still not confirming availability, which is making it extremely difficult for shipowners to provide firm freight quotes.”
Two coal cargo fixtures have been reported last week by Steel Authority of India Limited (SAIL), indicating active chartering in the east coast trade routes. A vessel of 80,000 +/- 10% mt has been fixed for the Port of Gladstone-Visakhapatnam Port route, with laycan scheduled between 31 March and 9 April at a freight rate of $25.60/t.
In another fixture, a 75,000 +/- 10% mt cargo has been booked for shipment from Abbot Point Coal Terminal, Hay Point Coal Terminal, and Dalrymple Bay Coal Terminal to India’s east coast, with a 20-29 March laycan, at a freight rate of $23.40/t.
Adding to the cautious sentiment, another source told BigMint, “Bunker prices are shooting up, so it’s more of a wait-and-watch moment right now. There hasn’t been much fixing yet.”
Outlook
Freight sentiment is expected to remain volatile in the near term as bunker price movements and geopolitical developments continue to influence vessel operating costs and quoting behaviour, with market participants likely to adopt a cautious approach before concluding fresh fixtures.
Leave a Reply