India: Bulk coal vessel freight rates exhibit mixed trends w-o-w

Coal vessel freight rates have shown divergent trends this week. Coal imports rose this week due to increased demand from power plants and steelmakers driven by pre-monsoon restocking needs.

Route specifications:

• Australia-India freight rates rise w-o-w: Freight rates from Australia increased w-o-w for India. As per BigMint's assessment, coal freight rates from port Hay Point to Paradip were recorded at $17.96/tonne (t), hiked by $0.46/t. Some inquiries were fixed this week supported the freight rates. Additionally, scheduled maintenance at Australia's Newcastle Port from 11 to 19 June is expected to impact the country's export volume. However, New Castle contributes around 40% of total Australia's exports. The exports recorded at 11.64 mnt in May'24 as against 11.31 mnt in April'24.

  
  
  

• South Africa-India freights drop w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around 17.37/t, a fall of $0.03/t w-o-w. This week saw a lack of enquiries due to a train derailment, with one rail line still non-operative. Scheduled maintenance has further added to supply pressure, resulting in a bid-offer disparity in the market.
  
  
• Indonesia to India freights inch up: Freight rates for coal shipments from East Kalimantan to Paradip stood at $12.95/t, inched up by $0.5/t w-o-w. Coal import enquiries have been slowed down this week amid declining buying interest and sufficient stocks in the market. Additionally, due to monsoon and upcoming Eid holidays freight rates have risen this week.