India: Coal freight rates rise amid increase in demand, higher Baltic index

• Bunker prices increase w-o-w
• Robust cargo from Australia tightens vessel supply

Coal freight rates in India have increased due to a combination of strong demand for coal imports, firm Pacific basin rates, and rising bunker prices. The robust cargo volumes from Australia, a key supplier to India, have contributed to tighter vessel availability, leading to higher freight costs. Additionally, steady demand from other Asian markets has kept tonnage engaged, limiting supply for India-bound shipments. The rise in bunker fuel prices has further added to shipping costs, pushing overall freight rates upward.

Notably, thermal coal inventories at Indian ports increased marginally by 0.7% to 13.76 million tonnes (mnt) in week 6 of CY’25 from 13.66 mnt in week 5 of calendar year 2025, as per BigMint data.

Baltic indices rise w-o-w: The Baltic indices, which indicate trends in vessel demand, rose w-o-w, suggesting increase in demand among ship bookers. The Baltic Dry Index (BDI) was recorded at 815 points on 10 February, increasing by 80 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) rose sharply by 235 points to 1,035 points on 10 February against 800 points on 3 February. Additionally, the Baltic Supramax Index (BSI) was assessed at 677 points on 10 February, climbing by 74 points w-o-w.

Route specifications

• Australia-India rates rise w-o-w: Freights from Australia to India rose by $0.8/t w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $13.2/dry metric tonne (dmt). Sources informed that SAIL booked one Panamax vessel from Australia to Vizag at $14.15/t, with shipment scheduled for 5- 14 March.
• South Africa-India freights climb w-o-w: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $11.2/t,up by $0.7/t w-o-w. As per sources, Mercuria booked one Panamax vessel from Richards Bay to east coast India at $11.25/t, with shipment scheduled for 18- 24 February.
• Indonesia-India freights increase w-o-w: Freights for coal shipments from East Kalimantan to Paradip stood at $10.3/t, increasing by $1.4/t w-o-w. Meanwhile, fixtures are under negotiation in this route.