India: Coal vessel freights decline w-o-w; Indonesia bucks trend

• Limited cargo available due to year-end holidays
  
  
• Fall in Baltic indices pressures freight rates
  
  

India's coal freight rates dropped this week following the limited cargo availability coupled with high tonnage levels, which have created an imbalance in the market. This oversupply of vessels relative to demand has intensified competition among shipowners, prompting them to accept lower bid levels to secure cargoes, thereby exerting further downward pressure on freight rates.

Notably, thermal coal stocks at Indian ports increased by 2.3% to 13.29 million tonnes (mnt) in week 50 from 13 mnt in week 49 of calendar year 2024 (CY'24), according to BigMint's data. Improved arrivals contributed to increased stock levels at several ports.

Baltic indices decline w-o-w: The Baltic indices, which indicate trends in vessel demand, largely fell w-o-w, suggesting tepid interest. The Baltic Dry Index (BDI) was recorded at 1,051 points on 16 December, down by 116 points w-o-w. Meanwhile, the Baltic Panamax Index (BPI) edged down by 72 points to 995 points on 16 December against 1,067 points on 9 December. Additionally, the Baltic Supramax Index (BSI) was assessed at 959 points on 16 December, inching down by 15 w-o-w.

Route specifications

• Australia-India rates drop w-o-w: Freights from Australia inched down by $0.25/tonne (t) w-o-w, with BigMint's assessment indicating that rates for Hay Point Port to Paradip were at $13.1/dry metric tonne (dmt). Sources informed that SAIL booked a Panamax vessel from Hay Point Port to Paradip at $13.20/t, with shipment scheduled for 18-27 January 2025.
  
  
• South Africa-India freights decline w-o-w: Freights from the Richards Bay Coal Terminal (RBCT) to Paradip stood at $12/t, down by $0.3/t w-o-w. Lack of fresh cargo demand was exacerbated by the year-end holiday season slowdown in trade activity.
  
  
• Indonesia-India freights inch up w-o-w: Freights for coal shipments from East Kalimantan to Paradip stood at $11/t, increasing by $1.4/t w-o-w. However, lack of fixed fixtures have been recorded in this route. As per sources, few deals are under negotiation keeping the freight level supported this week.