Demand for cargo vessels has remained strong as shipments of coal and iron ore continued to move into China.
Active production of steel in China has boosted the consumption of iron ore and Coking Coal that led to demand for cargo vessels staying strong. The freight rates have moved at around the rates prevailed the week last.
Demand for cargo vessels is expected to weaken in the coming week due to the holidays in China.
| Route | Supramax | Panamax |
| Australia to India | 14.5 | 11 |
| South Africa to India | 12 | 9 |
| Indonesia to India | 8 | 6 |
Freights in USD/MT
Source: SteelMint Research
| Route | Supramax |
| India to China | 10 |
Freights in USD/MT
Source: SteelMint Research
The Baltic Dry Index has shown a downward trend. On 30Sep’16, the index was recorded lower at 875 points. The downward drift in the index is due to the bearish expectation on demand for ships during the holiday period in China in the next week. The index is an indicator of the movement in freight rates in respect to all classes of vessels, carrying all types of commodities, including coal and iron ore.
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