India: Coal freights increase w-o-w as market sentiment improves

• Bunker tags remain range-bound w-o-w
• Falling port stocks support vessel demand

Coal freights in India rose w-o-w amid strong market sentiment, driven by healthy cargo demand across the Asia-Pacific region, particularly in the Indonesian basin. Limited tonnage availability for prompt loading dates led to a supply-demand imbalance, pushing rates higher. Additionally, rising freight derivative rates during Asian trading hours further reinforced the bullish outlook, encouraging higher bids. Despite bunker prices remaining range-bound w-o-w, the overall demand for coal shipments and a tightening vessel supply contributed to an uptrend in freights.

Notably, thermal coal inventories at Indian ports declined significantly by 8.6% in week 7 of CY’25, to 12.58 million tonnes (mnt) from 13.76 mnt in week 6, as per BigMint’s data. This supported vessel demand.

Baltic indices fall w-o-w, but Supramax bucks downtrend: The Baltic indices, which indicate trends in vessel demand, showed mixed trends w-o-w, suggesting fluctuations in demand among ship bookers. The Baltic Dry Index (BDI) was recorded at 792 points on 17 February, dipping by 23 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) fell by 55 points to 980 points on 17 February against 1,035 points on 10 February. However, the Baltic Supramax Index (BSI) was assessed at 765 points on 17 February, climbing up by 88 points w-o-w.

Route specifications

• Australia-India rates rise w-o-w: Freights from Australia to India inched up by $0.3/t w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $13.5/dry metric tonne (dmt). Sources informed that SAIL booked one Panamax vessel from Australia to Vizag at $14.80/t, with shipment scheduled for 15-24 March.
• South Africa-India freights climb up w-o-w: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $11.5/t, up by $0.3/t w-o-w. However, trading activity on this route was subdued, with few fixtures currently under negotiation.
• Indonesia-India freights increase w-o-w: Freights for coal shipments from East Kalimantan to Paradip stood at $11.5/t, increasing by $1.2/t w-o-w. As per sources, one Supramax vessel was booked from Indonesia to India, with shipment scheduled for 1-7 March.