Bulk coal vessel freights lacklustre amid lower enquiries

• New enquiries drop amid subdued trade
  
  
• Coal stocks at Indian port drop w-o-w
  
  

Coal vessel freight rates showed dull sentiments this week amid declining enquiries. In the global market, minimal activity and lower demand resulted in slow trading activities. A lack of fresh inquiries and minimal cargo movements have contributed to bearish market sentiments. Increasing steel inventory, falling steel exports and arrival of previously booked imported cargoes have kept buying interest subdued from Indian mills.

Notably, thermal coal stocks at Indian ports dropped by 4% w-o-w to 13.96 million tonnes (mnt) in week 35 as against 14.55 mnt in week 34, as per data compiled by BigMint.

Route specifications:

• Australia-India freight rates inch up w-o-w: Freight rates from Australia were largely stable this week. As per BigMint's assessment, freight rates from Port Hay Point to Paradip were recorded at $15.6/dry metric tonne (dmt), up by 0.12/t w-o-w. As per sources, absence of fresh fixtures were seen for the Australia-India coal route. In August 2024, shipments to India dipped to 1.66 mnt from 2.81 mnt in July, marking a 41% decline m-o-m.
  
  
• South Africa-India freights down w-o-w: Freight rates from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $14.5/t, having inched down by $0.31/t w-o-w. As per sources, a Panamax vessel from RBCT Port to Kandla Port on the west coast of India for the end-September period was heard bidding around $14/t. Notably, some enquiries are still under negotiation for September shipment.
  
  
• Indonesia-India freights fall w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $12.4/t, down by $0.4/t w-o-w. As per sources, shipments for the route have been seen for end-September dates. However, there is lack of fresh inquiries due to lower demand in the portside.