Bulk Shipping Freight Rates Remain Stable on Muted Demand

Muted conditions continued to prevail in bulk shipping freight market.

Freight rates underwent no improvement as a result.

Bulk shipping freight rates remained stable as commodity trading has retarded globally on account of economic slowdown prevailing in China, the world’s largest importer as well as exporter of several commodities, including coal and iron ore.

Current freight rates (coal cargoes)

1. Australia to India: USD 10/MT(Supramax), USD 8/MT (Panamax)
2. South Africa to India: USD 9/MT(Supramax), USD 9/MT(Panamax)
3. Indonesia to India: USD 5/MT(Supramax), USD 4/MT(Panamax)

Current freight rates (iron ore cargoes)

1. India to China: USD 4.9/MT (Supramax)

Compounding to the situation, declining crude oil prices have lowered demand for oil rigs, taking a toll on shipping freight rates.

Crude oil prices have continued to remain below USD 30/barrel mark. On 25 Feb’2016, crude oil prices were reported at USD 29.19/barrel.

The Baltic Dry Index, an indicator of global shipping freight rate movement, moved marginally to 327 points on 26 Feb’16, after dropping to the lowest-ever of 290 points on 10 Feb’16.