India: Coal freight rates drop w-o-w amid low cargo demand

• Baltic index reflects weak market sentiments
• SA-India, Indonesia-India routes lack fixtures

Coal freight rates in India continued to head south this week amid an oversupply of ships and a lack of fresh cargo demand. The higher availability of tonnage created competition among shipowners, enabling charterers to exert downward pressure on rates, particularly in the Indonesian basin. The market’s imbalance between supply and demand, alongside softer bunker prices, has compounded the negative sentiment, keeping freight rates suppressed.

Notably, thermal coal inventories at Indian ports dropped by 2.3% to 13.89 million tonnes (mnt) in week 03 of CY’25 from 14.22 mnt in week 02 of calendar year 2025 (CY’25), according to BigMint’s data.

Baltic indices drop w-o-w: The Baltic indices, which indicate trends in vessel demand, dipped w-o-w, suggesting weak trading interest. The Baltic Dry Index (BDI) was recorded at 987 points on 20 January, down by 61 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) fell by 56 points to 897 points on 20 January against 953 points on 13 January. Additionally, the Baltic Supramax Index (BSI) was assessed at 747 points on 20 January, decreasing by 72 points w-o-w.

Route specifications

• Australia-India rates largely stable w-o-w: Freights from Australia inched down by $0.1/t w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $11.8/dry metric tonne (dmt). Sources informed that SAIL booked two Panamax vessels from Australia to East Coast India at $12-12.35/t, with shipment scheduled for 15-28 February.
• South Africa-India freights drop w-o-w: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $10.8/t, down by $0.5/t w-o-w. BigMint observed that a decline in freight rates is primarily driven by limited trading activity and a lack of new fixtures in the market, which has further dampened demand.
• Indonesia-India freights decrease w-o-w: Freights for coal shipments from East Kalimantan to Paradip stood at $8.9/t, edging down by $0.1/t w-o-w. Meanwhile, no fresh fixtures were concluded on this route.