India: Cautious demand keeps coal freight soft; Indonesia-India falls to 2-month low

• Limited South African demand weighs on Panamax sentiment
  
  
• Indonesia weather disruptions push Supramax rates to two-month low
  
  

India's dry bulk coal freight market remained soft in the week ended 7 July 2026, weighed down by sluggish cargo movement, weather-related disruptions, and cautious chartering activity. While steady Australian enquiries provided some support, weaker demand from South Africa and subdued Indonesia-origin activity continued to pressure sentiment, with the Indonesia-India route falling to a two-month low.

The Panamax market witnessed mixed trends during the week. Australian routes remained largely stable, supported by balanced tonnage availability and steady enquiries. However, South African trade remained quiet as limited market participation and slower booking activity kept charterers cautious.

"South African demand remains weak with limited cargo movement. We have not seen much offtake in the market recently," a shipbroker said.

Route-wise update

The Supramax market remained under pressure as adverse weather conditions in Indonesia impacted vessel schedules and restricted trading activity. Thin cargo availability kept sentiment weak, pushing freight levels on the Indonesia-India route to a two-month low. However, expectations of improved seasonal demand offered some optimism.

"The market is slightly soft due to weather disruptions and is expected to remain slow in July. However, activity may pick up in August as demand improves ahead of the festive season," another shipbroker said.

Overall sentiment remained mixed, with participants awaiting clearer demand signals. Despite near-term uncertainty, some optimism persisted amid expectations of seasonal improvement.

"The market continues to fluctuate, although sentiment remains slightly positive amid expectations of improved activity in the coming weeks," a shipbroker said.

Outlook

India-bound coal freight rates are expected to remain range-bound in the near term. Market direction will largely depend on recovery in Indonesia and South African cargo flows, while steady Australian enquiries may provide support. Participants will continue to monitor weather disruptions, vessel availability, and upcoming seasonal demand for further cues.