India: Bulk coal vessel freight rates head south

Coal vessel freight rates headed south this week amid lack of fresh cargoes. The Pacific region saw reduced activity, with shipowners hesitant to accept lower rates while charterers lowered their offers. This resistance from shipowners and the absence of fresh cargoes contributed to the overall market slowdown.

Coal stocks across 21 Indian ports inched down as of 24 July 2024, according to BigMint data. During week 30 of calendar year 2024 (CY'24), thermal coal stocks at Indian ports stood at 14.37 million tonnes (mnt), down 6% w-o-w compared to 15.36 mnt in week 29, as per BigMint data.

Route specifications:

• Australia-India freight rates inch down w-o-w: Freight rates from Australia inched down this week. As per BigMint's assessment, freight rates from Port Hay Point to Paradip were recorded at $16.5/dry metric tonne (dmt), a decrease of $0.27/t w-o-w. As per sources, SAIL has booked a Panamax vessel from Hay Point to Paradip at a higher freight rate.
  
  
• South Africa-India freights drop w-o-w: Freight rates from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $16.2/dmt, down by $0.22/t/t w-o-w. Amid the monsoon season in India coal demand has decreased across regions primarily due to reduced consumption. Industrial demand has also slowed, as infrastructural projects are on hold due to the rains, resulting in limited coal imports.
  
  
• Indonesia-India freights fall w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $13.3/dmt, down $0.55/t w-o-w. Weak demand has lowered coal inquiries and disruptions in port operation have contributed to declining freight rates.