- South Africa-Paradip at over 5-month highs
- Pacific freight rates also rose sharply amid elevated bunker prices
Dry bulk coal freight rates extended their strong w-o-w gains as of 6 March 2026, supported by elevated bunker prices and broader macro uncertainties linked to the ongoing Iran–Israel–US conflict leading to very few fixtures but at higher levels, BigMint understands. Rates on the South Africa–Paradip route hovered near a five-month high, while Pacific routes also remained firm.
“Asia-Pacific Supramax freight rates trended higher. In the Indian Ocean, activity in the Persian Gulf remained muted amid risk and uncertainty linked to the Middle East conflict, prompting some shipowners to ballast toward other regions. Meanwhile, bunker prices continued to rally after sharp gains in previous sessions,” a ship broker said.
Meanwhile, Asia-Pacific Panamax freight rates edged higher as the Pacific basin saw a standoff between shipowners and charterers. With freight derivatives extending losses during Asian trading hours, charterers pressured shipowners by lowering their bid levels.
Route-wise updates
What supported the rise in freight rates?
- Elevated bunker prices push freight rates higher: Rising bunker prices, amid escalating Middle East tensions, have supported coal freight rates by increasing voyage costs for shipowners. With Very Low Sulphur Fuel Oil (VLSFO) trending higher, the elevated fuel cost base has kept freight rates firm despite lower cargo enquiries.
- Brent crude oil futures gain w-o-w: Brent crude oil futures increased by about $16.16/bbl w-o-w to $89.04/bbl (May 2026 contract) on 6 March driven by supply concerns as Middle East geopolitical tensions escalate and risk premiums rise in global energy markets.
- Baltic dry bulk indices head north w-o-w: The Baltic Dry Index rose 21 points w-o-w to 2,138 as of 5 March 2026, supported by strength in the Panamax and Supramax segments. The Panamax index climbed 81 points to 1,997 amid improved coal and grain demand, while the Supramax index advanced 93 points to 1,392 on firm minor bulk activity and tighter vessel supply in the Pacific.
Outlook
Dry bulk coal freight rates to India are expected to remain stable to slightly firm in the near term, supported by elevated bunker prices and geopolitical tensions that are raising voyage costs. However, muted cargo enquiries and ample vessel availability may limit sharper increases in rates. Pacific market sentiment will likely continue to influence freight movements.
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