India: Bulk coal vessel freights decline w-o-w on limited enquiries

• Lacklustre cargo movements in Indonesia-India route
  
  
• Logistics issues due to bad weather hit supplies
  
  

Coal vessel freight rates have dropped this week due to approaching monsoon season and availability of sufficient stocks at ports which weighed on enquiries this week.

A shipbroker stated, "Coal activity has reduced after the west coast rush before monsoons. Looking forward, since India is witnessing a heat wave and the electricity demand is at its peak, all private sector plants are ensuring sufficient supply of coal and thus can see good activity on the ECI in the coming weeks."

Another shipbroker said, "Absence of coal enquiries was seen this week due to holidays in Asian countries which has resulted in dull movement of cargoes."

Route specifications:

• Australia-India freight rates inch down w-o-w: Freight rates from Australian ports fell w-o-w for India. As per BigMint's assessment, coal freight rates from Port Hay Point to Paradip were recorded at $18.5/tonne (t), down by $0.3/t w-o-w on 23 May. This increase is due to higher demand for July-loading cargoes, with international buyers bidding higher, expecting tighter supply from key Australian miners and growing demand from Asian end-users.

  A source informed BigMint, "An enquiry was fixed this week. JSPL has booked a Panamax vessel of 75,000 t from Abboit Point to Paradip at a rate of $17.3/t. The shipment is scheduled for 5-12 June."
  
  

• South Africa-India freights decrease w-o-w: Freight rates for coal shipments from the Richards Bay Coal Terminal (RBCT) to Paradip are currently at around $18.55/t, a decrease of $0.95/t w-o-w. Limited enquiries were seen this week. Notably, the Adani Gangavaram Port Limited (AGPL) strike has been called off and both the conveyors have resumed coke movements recently. The port had declared force majeure on 10 April due to employee agitation, disrupting cargo handling and associated operations.
  
  
• Indonesia to India freights stable w-o-w: Freight rates for coal shipments from East Kalimantan to Paradip stood at $14.6/t, stable w-o-w. Demand for seaborne coal from India rose amid increasing heatwaves in the country. During the monsoon season, Indian domestic supplies may remain restricted, leading mills to restock. Buying interest from India shifted towards Panamax after higher freights for Supramax increased the landing prices for Indonesian cargoes.