India: Coal freights stay supported w-o-w as tighter vessel supply offsets cautious fixing

• Fresh Australian cargoes, tighter vessel supply support market sentiment
• Ship owners resist lower rates as charterers remain price-sensitive

India’s dry bulk coal freight market remained broadly supported in the week ended 21 July 2026, aided by firmer bunker prices, fresh Australian cargo enquiries and tighter vessel availability. However, cautious chartering activity and slower negotiations continued to limit broader market momentum.

Mixed sentiment prevailed across the dry bulk market during the week. A shipbroker told BigMint, “We’re seeing a mixed market at the moment. Capesize and Panamax are a bit softer, Supramax is holding up well due to tighter tonnage, and Handysize is mostly moving sideways.”

Meanwhile, Singapore’s Very Low Sulphur Fuel Oil (VLSFO) prices climbed to $792/t on 21 July, up from $741/t a week earlier. Firmer crude oil prices, healthy marine fuel demand and tight prompt fuel availability continued to support bunker costs and freight sentiment.

Despite the supportive backdrop, negotiations remained measured as owners and charterers stayed apart on workable freight levels. “Owners are holding firm to their rates but charterers are not willing to match those levels. This is the reason why negotiations are slow which is limiting the number of fresh fixtures,” a shipbroker said.

Route-wise update

Australian cargoes continued to underpin sentiment, while activity on the South Africa-India and Indonesia-India routes remained selective. On the Indonesia-India trade, both owners and charterers preferred to wait for clearer market direction despite tighter regional vessel availability.

“The Indonesia-India coal route has been fairly quiet, with only a handful of fixtures reported as both owners and charterers prefer to wait for clearer market direction,” a trader mentioned.

Outlook

Market sources remained cautiously optimistic. “The overall mood is still positive. Tighter vessel availability is lending support to the market, but we need stronger cargo demand before freight rates can move up meaningfully,” another shipbroker said.

India-bound coal freight is expected to remain broadly supported in the near term, backed by firm bunker prices, tighter vessel supply and owners’ resistance on rate ideas. However, cargo availability, charterers’ buying appetite and overall dry bulk sentiment will continue to shape market direction over the coming weeks.