Continuance of over-supply of shipping vessels has kept bulk shipping freight rates stable.
The over-supply condition also has ruled out any room for improvement in freight rates in the next months of 2016.
In a recent forecast by a well-known agency, shipping freight rates are likely to weaken further towards the end of the year.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | USD 11.50/MT | USD 9/MT | USD 6/MT |
| South Africa to India | USD 9/MT | USD 7/MT | USD 5/MT |
| Indonesia to India | USD 6/MT | USD 6/MT | USD 4/MT |
Current freight rates (iron Ore cargoes)
| Route | Supramax |
| India to China | USD 6.50/MT |
The recent rise in Crude Oil prices also have failed to bring about at least a speculation of improvement in freight rates in the near future. Demand for oil rigs continued to be low, therefore, no demand for vessels.
Crude oil prices have risen to USD 36.19/barrel, as on 23rd Mar’16, according to the latest information received.
The Baltic Dry Index has, however, has undergone a meager improvement as there was a slight improvement in demand for shipment of coal and iron ore. The index, recorded at 406 points as on 24th Mar’16, is an indicator of freight rate movements pertaining to cargoes of commodities, including coal and iron ore.
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