Persistence of subdued demand has kept bulk shipping freight rates almost stable.
Slowdown in the major global economies has slackned demand for commodities, leading to inactive freight rates. Moreover, availability of excess vessels and intense competition among shipping companies have also been contributing decisively towards lackluster freight market.
Crude oil prices have continued to remain low, ruling out any influence on shipping freight rates. On 10 Dec’15, crude oil prices are reported at USD 34.69/barrel.
Current freight rates in respect to panamax vessels:
1) Australia to India: USD 6.90/MT
2) USA to India: USD 16.50/MT
Month-wise crude oil prices with vessel freight
| Month | Crude Oil Prices | Vessel Freight, Australia to India |
| Jul’14 | 105.61 | 13.9 |
| Aug’14 | 100.75 | 14.2 |
| Sept’14 | 95.98 | 15.3 |
| Oct’14 | 85.06 | 15.1 |
| Nov’14 | 75.57 | 17 |
| Dec’14 | 59.46 | 11.5 |
| Jan’15 | 44.38 | 9.3 |
| Feb’15 | 54.06 | 10.3 |
| Mar’15 | 52.46 | 10.2 |
| Apr’15 | 57.3 | 9.9 |
| May’15 | 62.16 | 10.2 |
| Jun’15 | 60.21 | 10.7 |
| Jul’15 | 54.19 | 10.5 |
| Aug’15 | 45.46 | 9.5 |
| Sept’15 | 44.48 | 8.9 |
| Oct’14 | 48.1 | 9.5 |
| Nov’15 | 39.65 | 9 |
| Dec’15 | 34.69 | 6.9 |
Panamax vessel prices in USD/MT
Oil prices in USD/barrel
Source: OPEC, Research
Stability in freight rates is expected to continue in next week, as indicated by the prevailing market environment.
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