Waning demand for commodities in global market has continued to keep bulk shipping freight rates low and stable.
Besides, availability of excess vessels and intense competition among shipping companies have compounded to the freight rate stability.
Current freight rates (panamax)
1) Australia to India: USD 6.2/MT
2) US to India: USD 14/MT
Crude oil prices, another decisive parameter of shipping freight rates, have remained low, thus, failing to influence freight rate movement. On 7 Jan’16, crude oil prices were reported at USD 27.85/barrel.
Crude oil price vs freight rates
| 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 | 31.45 | 6.15 |
| Jan’15 | 27.85 | 6.2 |
Panamax vessel prices in USD/MT
Oil prices in USD/barrel
Source: OPEC, Research
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