India: Coal freight market sees mixed trends, Pacific activity stays quiet

• Panamax rates diverge as Australian demand holds firm
• Supramax gains marginal support despite muted fixing

India-bound coal freight markets showed a mixed trend in the week ended 6 October 2026, with Australian-origin Panamax business holding firm while South Africa-India rates came under pressure. Supramax routes found some support, although fresh cargo activity remained limited and bunker costs stayed elevated.

Market activity remained subdued across key routes, with participants largely adopting a wait-and-watch approach. “Still the same-no fixtures. The market is quiet, but bunker costs are high,” a shipbroker said.

Route-wise update

The Panamax market saw a divergence across India-bound routes, with Australian-origin business supported by firm owner sentiment and healthy met coal demand, while South Africa-India activity remained under pressure amid limited fresh enquiries.

Australian-origin business continued to provide support despite subdued Pacific activity. However, elevated rate ideas were proving difficult to work, limiting fresh vessel bookings.

“Old and high rates were not at all feasible for fixtures, leading to fewer vessel bookings and softer freight levels,” another shipbroker said.

On the South Africa route, sentiment weakened amid limited fresh enquiries. Atlantic rates also eased as weather disruptions subsided and operations normalised, adding pressure to the route.

In the Supramax segment, Indonesia-India activity remained muted, while higher bunker costs provided underlying support to freight levels. Limited fresh cargoes, however, kept fixing activity subdued.

The wider Pacific market also remained quiet, with regional holidays and limited fresh enquiries keeping trading activity selective.

Outlook

The India-bound coal freight market is likely to remain mixed and range-bound in the near term. Australian demand could continue to support Panamax sentiment, while limited South Africa enquiries and normalised Atlantic operations may keep pressure on the RBCT-India route. For Supramax, elevated bunker costs should provide some support, although limited fresh cargoes could cap further gains.