India: Coal freights fall w-o-w amid ample vessel supplies

• Absence of fixtures on key routes
• More tonnage in Pacific compared to Indian Ocean

Coal freights in India fell w-o-w amid the growing availability of tonnage in the Pacific basin. Market participants report a lengthy tonnage list, particularly in the North Pacific and Australian regions, where there is a significant imbalance between vessel supply and cargo demand. This oversupply of ships puts downward pressure on freight rates, as shipowners are compelled to lower their offers to secure limited cargoes.

With limited fresh enquiries and a slower-than-expected pick-up in coal shipments, especially for early laycan periods, charterers have had the upper hand in rate negotiations. This subdued demand has further reinforced bearish sentiment across the Pacific Panamax market.

Notably, thermal coal inventories at Indian ports edged up by 0.2% w-o-w to 12.31 million tonnes (mnt) in week 14 of CY’25, from 12.29 mnt in the previous week, according to BigMint data

Baltic indices decrease w-o-w: The Baltic indices, which indicate trends in vessel demand, fell w-o-w, suggesting a drop in demand among ship-bookers. The Baltic Dry Index (BDI) was recorded at 1,489 points on 7 April, down by 113 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) dipped by 72 points to 1,425 points on 7 April against 1,497 points on 31 March. Additionally, the Baltic Supramax Index (BSI) was assessed at 971 points on 7 April, inching down by 24 points w-o-w.

Route specifications

• Australia-India rates decline: Freights from Australia to India dropped by $1.10/tonne (t) w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $14.9/dry metric tonne (dmt). Sources informed that SAIL booked two Panamax vessels from Australia to Vizag at $14.35-14.85/t, with shipment scheduled for 1-14 May.
• South Africa-India freights steady: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip were stable at $14.2/t, w-o-w due to steady cargo demand and limited vessel availability.
• Indonesia-India freights drop: Freights for coal shipments from East Kalimantan to Paradip stood at $13.3/t, decreasing by $0.6/t w-o-w amid weak trading activity in the Pacific basin, especially on the Indonesia-China route. Additionally, soft market sentiment and declining bunker prices further pressured rates downward.