India: Dry bulk coal freights ease w-o-w on softer demand, ample vessel supply

• Softer Pacific enquiry caps Panamax momentum
  
  
• Ample vessel supply weighs on Supramax market
  
  

Dry bulk coal freights to India moved lower w-o-w on 26 May as softer Australian cargo enquiry, thinning Atlantic fixtures and ample vessel availability weighed on key routes. Enquiry levels remained subdued across parts of the market, keeping owners cautious despite selective cargo discussions.

On the Australia-India Panamax route, weaker Pacific enquiry and slower fixing momentum pressured rates during the week. A shipbroker said, "Some exporters are holding back cargoes, expecting freight rates to soften further."

Route-wise update

The Indonesia-India Supramax market remained under pressure amid weak coal demand and comfortable vessel availability in Southeast Asia. Enquiries slowed compared to previous weeks, restricting fresh fixing activity.

"When asked, are fixtures happening? There were plenty of fresh enquiries earlier, but market activity has started shrinking now," a shipbroker said.

Meanwhile, the South Africa-India Panamax route stayed relatively stable despite thinner Atlantic fixtures and muted India-bound cargo movement. Cargo discussions continued during the week, although overall activity remained selective.

Another shipbroker said, "Capesize remained firm, while Panamax and Supramax markets turned slightly softer. Handy segment stayed largely flat," indicating mixed sentiment across the dry bulk segment. Broader sentiment remained cautious as charterers monitored freight direction and bunker movement, while owners resisted sharper rate corrections on selective cargoes.

Outlook

Freight sentiment may remain rangebound in the near term amid softer Pacific enquiry, easing cargo momentum and comfortable vessel supply, although selective cargo demand and firm Capesize sentiment could provide intermittent support to key India-bound routes.