Panamax coal freight rates on established routes from South Africa's Richards Bay and Indonesian ports to India remain under pressure despite a rise in inquiries as "firm" cargoes remained elusive, sources said Tuesday.

"If there is so much demand for coal then some deals should have been done and that should have pushed up freight rates but it's just the other way around now," a Singapore-based source said.

A few shipments were seen out of Indonesia to India as some Indonesian coal miners tried to reduce their ballooning stockpiles, he said.

Buying from India and China has been weak recently and was not enough to support freight rates, said the market source.

"I have Supramax ship owners who are ready to go from Indonesia to west coast of India at $11.50/mt, but there are not many cargoes," he said. "It's like 10 to 20 vessels chasing one cargo."

On Friday, sources had pegged Supramax freight rates from Indonesia to India's east coast at about $11-$11.50/mt and to the west coast at about $13-$13.50/mt.

A fixture was heard for a Panamax vessel from Indonesia to east coast of India at $9.75/mt, but that was for a geared vessel which usually command a higher freight rate, the Singapore-based source said.

Demand for gearless Panamaxes was very low currently, he said.

A geared vessel has loading/discharging equipment fitted on board while a gearless vessel does not have this equipment.

Platts assessed the daily Panamax freight rates from South Kalimantan to India's west coast at $8.90/mt and to east coast at $7.90/mt, both unchanged from Monday.

INDIA INQUIRIES

Shipping sources said inquiries on the Richards Bay to India route were slowly picking up, especially for Panamaxes.

Charterers were looking at freight rates of about $16.50-$17/mt for a voyage from Richards Bay to India on a Panamax, with ship owners demanding $18-$18.50/mt, an India-based source said, but acknowledged that freight rates were under pressure due to an oversupply of vessels.

Another India-based source pegged the current freight rate from Richards Bay to the east coast of India at about $16/mt.

A Panamax vessel was heard fixed from Richards Bay to New Mangalore port on India's west coast at $13.50/mt early last week, the first India-based source said, adding that freight rates to west coast of India have been hovering between $13.50-$14.50/mt.

"I don't see anything happening in the near term that can push up freight rates," he said.

Platts assessed the daily Panamax freight rates from Richards Bay to India's west coast at $14.40/mt, down 10 cents from Monday, and to the east coast at $16/mt, unchanged on the day.

Source: Platts