Bulk shipping freight rates have remained stable in the absence of any strengthening of demand.
Demand for cargo ships has not increased despite continuance of coal imports in China and India. Over-supply of vessels has continued to persist.
However, shipments of coal and iron ore, along with other commodities, is expected to strengthen substantially towards the end of Sep’16. Freight rates are thus expected to see some upward movement.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax |
| Australia-India | 13 | 11 |
| South Africa-India | 11 | 9 |
| Indonesia-India | 7 | 6 |
Freights in USD/MT
Source: SteelMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| Australia-India | 8.5 |
Freights in USD/MT
Source: SteelMint Research
The Baltic Dry Index was recorded lower at 682 points, as on 18Aug’16, due to muted demand for cargo vessels. The index is an indicator of the global movement in freight rates in respect to all classes of vessels, transporting all kinds of commodities, including coal and iron ore.
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