Bulk shipping freight rates have remained stable in the absence of any improvement in demand.
Availability of excessive vessels amid slowdown in global trade has kept shipping freight rates low and stable.
Current freight rates (Coal)
1. Australia to India: USD 10/MT (Supramax)
2. South Africa to India: USD 9/MT (Supramax)
3. Indonesia to India: USD 5/MT (Supramax)
Current freight rates (Iron Ore)
1. India to China: USD 5/MT (Supramax)
Global trade has retarded on account of slowdown in the Chinese economy and declining demand for oil rigs worldwide due to falling crude oil prices. As a matter of fact, China is the largest exporter as well importer of several commodities.
Imports in China fell 1.8% in 2015, while, exports from that country declined 13.2% in the same year, according to secondary sources. Crude oil prices have remained low, and was reported at USD 25.11/barrel on 11 Feb’16.
The Baltic Dry Index, which measures shipping costs of coal, iron ore and other non-oil commodities, has fallen 76% since Aug’15.
On the positive side, low freight rates will help Indian coal buyers by lowering landed costs of qualitatively superior South African coal.
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