- Softer demand and ample prompt tonnage weigh on Australia-India Panamax
- Improved Pacific sentiment supports Indonesia-India Supramax freight
India-bound coal freight markets turned mixed in the week ended 14 August 2026, with Australian Panamax freight coming under pressure while South Africa and Indonesia-linked routes held firmer. Softer Panamax demand and comfortable prompt tonnage weighed on the Australia-India route, while stronger Pacific sentiment and improved North Pacific activity supported geared tonnage.
Despite the varied freight performance, market activity remained cautious. A shipbroker said, “The market is feeling slightly soft, with weak sentiment and limited fresh enquiry keeping activity subdued. Participants are cautious about taking aggressive positions.”
Panamax market turns mixed amid softer Australian demand
Panamax freight sentiment was mixed, with softer demand and comfortable prompt tonnage weighing on the Australian route. South African freight, meanwhile, found some support from improved Panamax sentiment despite limited fresh fixing activity.
The subdued activity reflects a market where owners are finding it difficult to secure business at preferred levels. A shipbroker said, “We are trying to secure some fixtures, but the market is very tough at the moment.”
Supramax gains on firmer Pacific activity
Supramax freight remained better supported, helped by firmer Pacific sentiment and improved North Pacific demand. Fresh Indonesia-India enquiries lent some support, although limited fixing activity and selective regional demand kept the recovery measured.
A shipbroker said, “Business has been a bit slow lately as rains are disrupting cargo movement and operations. This has kept overall market activity and freight sentiment under pressure.”
Market highlights
- Baltic Dry Index (BDI) declines w-o-w: The BDI fell 7.0% (213 points) w-o-w to 2,844 as of 13 August, from 3,057 a week earlier, marking its fourth consecutive session of decline and lowest level since 3 August. The Panamax Index eased 0.6% (13 points) to 2,262, as weaker Atlantic sentiment offset support from steady coal and grain demand. The Supramax Index edged up 0.3% (5 points) to 1,613, with firmer Pacific activity largely offsetting weakness in the Indian Ocean and subdued minor bulk demand.
- Bunker prices ease w-o-w: Singapore VLSFO bunker prices eased to $821/tonne (t) as of 14 August, from $830/t a week earlier. Softer marine fuel costs provided some relief to vessel operating expenses, although prices remained elevated.
- DCE coke futures rebound w-o-w: DCE coke futures rose to RMB 1,986/t ($294.52/t) as of 14 August, from RMB 1,868.5/t ($276.85/t) a week earlier. Firmer raw material prices and expectations of improved steel production supported sentiment, although concerns over steel demand continued to limit the upside.
- Brent crude futures rebound w-o-w: Brent crude futures for October 2026 rose to $87.07/barrel (bbl) as of 14 August, up $5.19/bbl (6.3%) from $81.88/bbl a week earlier. Renewed geopolitical tensions and concerns over potential Middle East supply disruptions supported prices, although weaker demand expectations and a sharp build in US crude inventories capped gains.
Outlook
BigMint expects India-bound coal freight to remain mixed in the near term. Panamax routes are likely to face some pressure from softer demand and comfortable prompt tonnage, particularly on the Australia-India corridor, while limited South African fixing activity could restrict upside elsewhere.
Supramax freight is expected to maintain a cautiously positive tone, supported by firmer Pacific sentiment and improving North Pacific activity. However, selective Indonesian enquiries, limited fixing activity and cautious chartering could keep gains measured. Fresh coal stems, changes in prompt vessel availability and weather-related disruptions will remain key factors to watch.
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