Dry bulk coal freight rates decline w-o-w, Australia routes buck trend

• SA freights dip on low RBCT inventory, higher Indian output
  
  
• Oversupply keeps freights supported on Australia sector
  
  

Coal freight rates dropped this week for key routes, expect on the Australia sector. The enquiries have lessened as buyers, who traditionally relied on seaborne supplies, are now indicating a preference for domestic coal. In the domestic market, coal production has increased, resulting in lower export volumes.

Route-wise details

• South Africa-to-India freight edges down w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal to Krishnapatnam, India, are currently at around $20.6/tonne (t), a slight increase of $0.9/t w-o-w. Lower inventories at RBCT port and rising domestic production in India led to limited enquiries this week.
  
  
• Australia-to-India freight rises w-o-w: Freight rates from Australian ports rose w-o-w for Indian as well as for Chinese ports. As per sources, SAIL booked a Panamax vessel for 80,000 t of metallurgical coal from Gladstone Port, Australia to India's east coast at a freight of around $20.95/t. The shipment is scheduled from 1-10 April 2024. In addition, steel demand is quite weak, resulting in diminished demand in spot markets from India and China, which led to an oversupply situation which supported the freight rates.
  
  
• Indonesia-to-India freight drops w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip, India stood at $12.20/t, dipping by $0.65/t w-o-w. Absence of cargoes and weak tonnage demand in the Pacific region for exporting coal from Indonesia is seen, sources informed. Fresh fixtures for the Indonesia-India route are unavailable.