India-bound coal freights remain firm w-o-w in Pacific basin; Atlantic pressured by weak enquiries

• Baltic Dry Index climbs up to over 5-month high
  
  
• Tight prompt tonnage supports Supramax market
  
  

Dry bulk coal freights to India showed mixed trends in the week ended 15 May, with Australia-India Panamax routes increasing on healthy demand, while the Indonesia-India Supramax rates gained due to tighter vessel availability in Southeast Asia. Market sentiment, however, remained cautious amid slow fixing activity and elevated bunker costs.

A shipbroker said, "The market is firm, and freights are much higher. However, bookings are not strong." Another broker described overall sentiment as "bearish," indicating uncertainty over recent gains.

Route-wise update

In the Pacific, Panamax sentiment remained firm on active Australia-India coal enquiries and tight prompt tonnage, keeping owners bullish on rates. Meanwhile, the RBCT-India route faced pressure from muted enquiries and steady Atlantic vessel availability.

Another shipbroker added, "Surging bunkers are killing freights. Indonesia-India is very weak at the moment, while the Indonesia-China round voyage is going well," highlighting pressure from elevated fuel costs and relatively stronger Chinese demand.

Market highlights

• Baltic Dry Index hits over 5-month high: The Baltic Dry Index (BDI) surged 161 points w-o-w to 3,195 on 14 May, hitting over a 5-month high, led by a sharp increase in the Capesize segment, which climbed 177 points to 5,316, while the Supramax index gained 37 points to 1,558, supported by strong iron ore shipment activity from Brazil and Australia, healthy minor bulk cargo demand, and relatively tighter vessel availability across key trade routes.
  
  
• Bunker prices edge up w-o-w: Bunker prices rose by $8/t w-o-w to $835/t as of 15 May, from $827/t a week earlier, supported by firmer crude oil trends and steady demand across key bunkering hubs.
  
  
• Brent crude futures rebound w-o-w: Brent crude oil (July 2026 contract) was last assessed at $108.3/bbl on 15 May, up by $7.52/bbl from $100.78/bbl a week earlier, supported by renewed supply concerns and firmer global energy market sentiment.
  
  
• DCE coke futures decline w-o-w: Coke futures on the Dalian Commodity Exchange fell by RMB 21/t ($3.10/t) w-o-w to RMB 1,807/t ($266.32/t) as of 15 May, reflecting softer market sentiment amid cautious trading activity and mixed downstream steel demand.
  
  

Outlook

Coal freights to India are expected to remain mixed. Panamax routes are likely to stay supported by active Pacific coal enquiries and limited prompt tonnage, while Supramax sentiment may remain largely stable amid cautious chartering activity and uneven regional demand.