In certainly good news for cargo ship owners, bulk shipping freight rates have of-late shown an increasing trend.
Heavy shipments of coal and iron ore to China have resulted in freight rates of cargo vessels going up. The gain in cargo shipping activity has unleashed bullish outlook among cargo ship owners, who speculated the freight rates to rise further in the near term.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 13 | 11.5 | 10 |
| South Africa to India | 11 | 10 | 8.5 |
| Indonesia to India | 7 | 7.5 | 6 |
Freights in USD/MT
Source: SteelMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 8 |
Freights in USD/MT
Source: SteelMint Research
The Baltic Dry Index has risen significantly high to 1,181 points on account of strong cargo shipments to China. The index is an indicator of global movement in cargo freight rates in respect to all classes of vessels, transporting all kind of commodities, including coal and iron ore.
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