India: Dry bulk coal freight rally continues w-o-w despite slow vessel fixing
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- Rising bunker, oil futures continue to lift freights
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- Charterers postpone laycans amid sharp rise in freights
Dry bulk freights for coal shipments to India continued to strengthen w-o-w, supported by firm vessel sentiment and higher operating costs, even as fresh vessel fixing activity remained relatively slow. Market participants noted that limited prompt tonnage and elevated bunker prices helped keep freight levels firm across key routes, while charterers largely adopted a cautious approach amid ongoing market uncertainties.
“Freight derivatives edged higher during Asian trading hours, while bunker prices held relatively steady after recent bouts of volatility,” a ship broker said.
Another source noted, “The market remains highly volatile, with cargoes available, but charterers are postponing their laycans as freights have risen sharply. Shippers and receivers are reluctant to pay higher levels, while bunker prices have started to increase again.”
Route-wise updates:
What supported the rise in freights?:
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- Elevated bunker prices keep rates firm: Rising bunker prices, amid escalating Middle East tensions, have supported coal freight rates by increasing voyage costs for shipowners. With Very Low Sulphur Fuel Oil (VLSFO) hovering around $1,204/t as of 13 March 2026, the higher fuel cost base has kept freight levels supported despite relatively weaker cargo enquiries.
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- Brent crude futures rise w-o-w: Brent crude oil futures climbed $9.94/bbl w-o-w to $98.98/bbl (April 2026 contract) as of 13 March, supported by supply concerns amid escalating Middle East geopolitical tensions and rising risk premiums in global energy markets.
Enquiries understood fixed (06-12 Mar’26):
Outlook:
In the near term, dry bulk coal freight rates to India are expected to remain firm, supported by elevated bunker prices and geopolitical uncertainties in the Middle East. While cargo availability remains steady, fixing activity could stay cautious as charterers delay commitments amid high freight levels. However, limited prompt vessel supply and higher voyage costs may continue to underpin freight rates across key coal import routes into India.
