- Australian coal demand, tight prompt tonnage support Panamax freight
- Weak Indonesian enquiries, ample vessel supply pressure Supramax
India-bound coal freight markets remained mixed in the week ended 7 August 2026. Panamax rates strengthened on healthy Australian coal enquiries, limited prompt tonnage and typhoon-related disruptions in North Asia. Supramax freight, however, weakened as Indonesian cargo activity remained subdued and vessel availability was comfortable.
Panamax sentiment improved as stronger Australian coal programmes increased competition for prompt vessels, while weather-related disruptions in North Asia reduced vessel flexibility. Firm sentiment in the East Coast South America (ECSA) market also supported the wider Pacific basin. A shipbroker said, “Australian coal enquiries have picked up and prompt tonnage remains tight. Owners are holding firm on offers, particularly for vessels less exposed to the typhoon-affected areas.”
South African coal freight remained weaker, with limited Indian buying interest and sparse fixing activity restricting chartering opportunities. Another shipbroker said, “The Pacific is holding up well, but South African cargoes continue to struggle with limited enquiries. Without stronger Indian demand, freight is finding it difficult to gain traction.”
Route-wise update
The Supramax segment remained under pressure as Kalimantan cargo enquiries stayed thin, while ample tonnage across the Pacific and Indian Ocean weighed on freight levels. A shipbroker noted, “Cargo enquiries remain thin across Kalimantan, and vessel supply continues to outpace demand. Until fresh coal stems emerge, freight is likely to remain under pressure.”
Overall, stronger Australian coal flows and tighter Panamax tonnage contrasted with softer South African and Indonesian cargo activity. Freight performance across India-bound routes will depend on fresh coal stems, Indian import demand and prompt vessel availability in the coming weeks.
Market highlights
- Baltic Dry Index (BDI) rebounds w-o-w: The BDI rose 14.4% (384 points) w-o-w to 3,057 as of 6 August from 2,673 a week earlier, driven by a strong Capesize recovery despite a modest pullback after five consecutive sessions of gains. The Panamax Index increased 11.5% (235 points) to 2,275, its highest since 15 June, supported by firm coal and grain demand and tighter vessel availability. The Supramax Index edged down 0.1% (2 points) to 1,608 as subdued minor bulk activity and ample tonnage limited upside.
- Bunker prices rebound w-o-w: Singapore VLSFO bunker prices increased by $22/t (2.7%) w-o-w to $830/t as of 7 August from $808/t a week earlier. Higher marine fuel prices modestly increased voyage operating costs for shipowners.
- DCE coke futures rebound w-o-w: September 2026 coke futures on the DCE rose to RMB 1,868.5/t ($276.85/t) as of 7 August from RMB 1,767/t ($261.57/t) a week earlier. Firmer raw material prices and expectations of improved steel production supported sentiment, although concerns over steel demand limited the upside.
- Brent crude futures extend losses w-o-w: Brent crude futures for October 2026 fell to $81.88/bbl as of 7 August, down $8.37/bbl (9.3%) from $90.25/bbl a week earlier. Easing geopolitical risk premiums, expectations of higher supply and concerns over global oil demand continued to weigh on prices.
Outlook
BigMint expects India-bound coal freight to remain mixed in the near term. Panamax routes are likely to stay supported by healthy Australian coal demand, tighter prompt vessel availability and continued owner resistance to lower offers. However, the arrival of additional ballasting vessels into the Atlantic could gradually ease supply tightness and temper further gains.
Supramax freight is expected to remain largely range-bound, as limited coal enquiries from Indonesia and sufficient vessel availability continue to weigh on sentiment. Fresh cargo stems from East and South Kalimantan, along with any improvement in chartering activity, will be key to determining the market’s next direction.
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