India: Coal freights remain largely firm w-o-w amid mixed market signals

• Weak cargo demand seen across Asia-Pac
• Charterers, shipowners exhibit caution

Panamax coal freight rates to India reflected mixed sentiments, balancing global shipping market weakness with regional resilience. While the broader market faced pressure from oversupply-particularly in the Pacific, steady demand from India’s power and industrial sectors provided a stabilising counter-force by supporting regular vessel bookings.

However, a widening bid-offer spread led to reduced fixture activity, limiting volatility and keeping rates largely range-bound. Similarly, Supramax freight rates to India remained stable amid muted optimism, as subdued cargo demand across Asia-Pacific and a cautious approach from both charterers and owners curbed any notable rate movement.

Notably, thermal coal inventories at Indian ports declined 2.2% w-o-w to 14.62 million tonnes (mnt) in Week 20 of CY’25, suggesting a gradual drawdown in stockpiles.

Baltic indices rise, BPI bucks trend: The Baltic indices, which indicate trends in vessel demand, exhibited mixed trends w-o-w. The Baltic Dry Index (BDI) was recorded at 1,388 on 19 May, climbing by 89 points w-o-w. However, the Baltic Panamax Index (BPI) dipped by 63 points to 1,290 on 19 May against 1,353 on 12 May. Additionally, the Baltic Supramax Index (BSI) was assessed at 978 on 19 May, edging up by 9 points w-o-w.

Route specifications

• Australia-India rates up: Freights from Australia to India climbed by $0.4/t w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $14.8/dry metric tonne (dmt). Sources informed that SAIL booked one Panamax vessel from Australia to Vizag at $15.50/t, with shipment scheduled for 15-24 June.
• South Africa-India freights inch down: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip dipped w-o-w by $0.1/t to $13/t, amid a combination of soft demand from Indian buyers, steady vessel availability, and restrained trading activity. With fewer cargo enquiries and cautious sentiment among charterers and owners, fixture activity remained limited, exerting downward pressure on freight levels. Meanwhile South African portside coal prices in India have hit 4-year low on weaker buying interest and preference for domestic coal auctions.
• Indonesia-India freights stable: Freights for coal shipments from East Kalimantan to Paradip stood at $13.5/t, unchanged w-o-w. The lack of new fixtures and low cargo volumes across the Pacific and Indian Ocean regions, paired with cautious market behaviour, contributed to the rate stability.