Bulk shipping freight rates have remained almost stable as inactive demand continued to persist.
Slowdown in the major global economies has prevented upswing in freight rates. Moreover, availability of excess vessels and intense competition among shipping companies have also contributing decisively towards lackluster freight market.
Crude oil prices have continued to remain low, ruling out any influence on shipping freight rates. On 3 Dec’15, crude oil prices were reported at USD 37.89/barrel.
Current freight rates in respect to Panamax vessels:
1) South Africa to India: USD 6.60/MT
2) Australia to India: USD 7.70/MT
3) USA to India: USD 17.50/MT
Month-wise crude oil prices with vessel freight
| Month | Crude Oil Price | Vessel Freight, South Africa to India |
| Jul’14 | 105.61 | 15 |
| Aug’14 | 100.75 | 15.5 |
| Sept’14 | 95.98 | 15.8 |
| Oct’14 | 85.06 | 15.6 |
| Nov’14 | 75.57 | 16 |
| Dec’14 | 59.46 | 12.5 |
| Jan’15 | 44.38 | 9 |
| Feb’15 | 54.06 | 9.5 |
| Mar’15 | 52.46 | 10.5 |
| Apr’15 | 57.3 | 9.5 |
| May’15 | 62.16 | 10 |
| Jun’15 | 60.21 | 10.4 |
| Jul’15 | 54.19 | 11.5 |
| Aug’15 | 45.46 | 10.5 |
| Sept’15 | 44.48 | 10 |
| Oct’14 | 44.66 | 9.5 |
| Nov’15 | 40.21 | 7.5 |
| Dec’15 | 37.89 | 6.6 |
Panamax vessel prices in USD/MT
Oil prices in USD/barrel
Source: OPEC
Bulk freight rates are not expected to change remarkably in the coming week as demand is unlikely to improve.
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