India: Coal vessel freights decline w-o-w amid slow trading activity
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- Demand for imported coal in India weakens
- Thermal coal stocks at Indian ports rise
India's coal vessel freight rates softened this week amidst reduced trading activity in the Pacific, pointing to seasonally low demand for coal transport. Rangebound bunker prices and marginally weaker freight derivatives further pointed to subdued market sentiment and cost stability.
Notably, thermal coal stocks at Indian ports increased by 3% to 12.74 million tonnes (mnt) in week 48 from 12.36 mnt in week 47 of calendar year 2024 (CY'24), according to BigMint data.
Baltic indices drop w-o-w: The Baltic indices, which indicate trends in vessel demand, decreased w-o-w, suggesting weak interest in ship booking. The Baltic Dry Index (BDI) was recorded at 1,354 points on 2 December, down by 183 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) was recorded at 1,018 points on 2 December against 1,083 points on 25 November. The Baltic Supramax Index (BSI) was assessed at 980 points on 2 December, inching down by 4 points w-o-w.
Route specifications
- Australia-India rates fall w-o-w: Freights from Australia dipped 0.4/tonne (t) w-o-w, with BigMint's assessment indicating that rates for Hay Point Port to Paradip were at $14.2/dry metric tonne (dmt). Sources informed that SAIL has booked a Panamax vessel from Hay Point Port to Vizag Port at $13.95/t, with shipment scheduled towards the end of December.
- South Africa-India freights inch up w-o-w: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $13/t, up $0.25/t w-o-w.
- Indonesia-India freight rates drop: Freights for coal shipments from East Kalimantan to Paradip stood at $11.2/t, inching down by $0.12/t w-o-w. As per sources, the decrease in demand for this route is attributed to subdued demand in the Pacific market, driven by the increased competitiveness of domestic coal and portside seaborne coal prices in India, which has dampened buyers interest in imported coal.
