India: Coal vessel freights fall w-o-w except on Australia-India route

• Indian Ocean region witnesses lack of cargo flow
• Limited enquiries on major routes weigh on freights

Panamax coal-laden vessel freight rates to India (excluding on the Australia-India route) declined due to weak cargo demand from key origins. These regions have seen limited grain or coal loading activity bound for India, leading to excess tonnage availability and softer freight rates.

The Atlantic basin, in particular, has shown a disparity between mineral and grain chartering demand, with mineral cargoes witnessing weaker bids.

Since India predominantly imports coal and other dry bulk commodities from these origins, subdued demand and lack of firm fixtures have weighed on freight sentiment.

The lack of pull from Indian buyers, partly due to monsoon disruptions, lower coal burn, and sufficient stock levels at ports and power plants, has dampened the need for fresh bookings. This regional mismatch between cargo flow and vessel supply has resulted in softer Panamax freight rates on Indian routes excluding Australia.

The Indian Ocean region in particular witnessed a lack of fresh cargo flow, which kept rates under pressure. In Asia, where activity was generally muted, an abundance of open Supramax vessels and limited new inquiries led to stiff competition among owners, forcing them to reduce their offers.

Baltic indices show mixed trends w-o-w: The Baltic indices, which indicate trends in vessel demand, exhibited mixed trends w-o-w, indicating fluctuating interest and activity levels among charterers. The Baltic Dry Index (BDI) was recorded at 1,633 points on 12 June, increasing by 215 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) increased by 130 points to 1,249 points on 12 June against 1,119 points on 5 June. However, the Baltic Supramax Index (BSI) was assessed at 933 points on 12 June, edging down by 18 points w-o-w.

Route specifications

• Australia-India rates rise w-o-w: Freights from Australia to India increased by $0.7/tonne (t) w-o-w, with BigMint’s assessment indicating that rates for Hay Point Port to Paradip were at $13.7/dry metric tonne (dmt). Sources informed that SAIL booked a Panamax vessel from Australia to EC India at $13.75/t, with shipment scheduled for 1-10 July.
• South Africa-India freights stable w-o-w: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip remained stable w-o-w at $11/t. Lack of coal demand from Indian buyers limited fresh cargo inquiries, while available tonnage remained steady, increasing competition among owners.
• Indonesia-India freights fall w-o-w: Freights for coal shipments from East Kalimantan to Paradip decreased w-o-w by $0.3/t to $13.1/t. According to sources, a slowdown in Indian coal imports with the onset of monsoon and ample stockpiles at ports pressured freight, alongside abundant prompt vessel availability in Southeast Asia.