The recent spurt in coal and iron ore shipments to China has slightly improved cargo freight rates for capesize and panamax vessels.
Recently, imports of coking coal and iron ore have increased in China due to rising steel production there. This has improved demand for capesize and panamax vessels along the key Asian routes.
Freight rates of coal and iron ore cargoes from Australia to China are assessed recently at USD 4.9/MT and USD 4.35/MT respectively.
However, the overall situation is still grim on account of availability of surplus ships and slowing demand for commodities globally.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax |
| Australia to India | 11.5 | 9.5 |
| South Africa to India | 10 | 8.5 |
| Indonesia to India | 6 | 5.5 |
Freights in USD/MT Source: SteelMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 7.7 |
Freights in USD/MT Source: SteelMint Research
The Baltic Dry Index went up slightly on Thursday due to higher demand for capesize and panamax vessels. The index was recorded at 611 points on 9Jun’16. The index is an indicator of movement in freight rates of cargo shipping vessels, transporting all types of commodities, including coal and iron ore.
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