India: Coal freight rates fall w-o-w amidst vessel surplus

• Key routes see absence of fixtures
  
  
• Baltic Panamx index falls 87 points
  
  

Coal freight rates in India have continued to decline this week due to an oversupply of vessels in the market, which has outpaced demand, despite a modest rise in cargo volumes. While there has been a slight uptick in cargoes for Australian and North Pacific round trips, the overall market remains subdued. In particular, the Indonesian basin is experiencing significant downward pressure on freight rates, as the surplus of available vessels, coupled with limited demand for Indonesian round voyages, has kept rates low. This trend persists even as cargo volumes show some improvement and bunker prices rise.

Notably, thermal coal inventories at Indian ports increased by 2% to 14.22 million tonnes (mnt) in week 2 from 13.93 mnt in week 1 of calendar year 2025 (CY'25), according to BigMint's data.

Baltic indices falls w-o-w: The Baltic indices, which indicate trends in vessel demand, fell w-o-w, suggesting tepid interest. The Baltic Dry Index (BDI) was recorded at 1,048 points on 13 January, down by 24 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) dropped by 87 points to 953 points on 13 January against 1,040 points on 6 January. Additionally, the Baltic Supramax Index (BSI) was assessed at 819 points on 13 January, inching down by 65 points w-o-w.

Route specifications

• Australia-India rates stable w-o-w: Freights from Australia remained stable w-o-w, with BigMint's assessment indicating that rates for Hay Point Port to Paradip were at $11.9/dry metric tonne (dmt). Sources informed that SAIL booked one Panamax vessel from Australia to East Coast India at $12.75/t, with shipment scheduled for 31 January-9 February.
  
  
• South Africa-India freights drop w-o-w: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $11.3/t, down by $0.2/t w-o-w. BigMint observed that a fall in freights is likely due to less demand compared to other regions, alongside an adequate supply of vessels, keeping rates under pressure.
  
  
• Indonesia-India freights decrease w-o-w: Freights for coal shipments from East Kalimantan to Paradip stood at $9/t, dropping by $1.8/t w-o-w. Absence of fresh fixtures, weak demand in the region, and limited cargo availability have weighed on freights.