Bulk shipping freight rates have somewhat rebounded on account of intense shipping of coal and iron ore to China.
Shipments of coal to China have intensified as demand for coal from power plants there increased with the winter season setting in.
However, the freight rates are expected to go down again towards the end of this month, when industrial activity will shrink due to the Christmas festival.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 13.5 | 11.5 | 10 |
| South Africa to India | 11 | 10.5 | 9 |
| Indonesia to India | 7 | 8 | 6.5 |
Freights in USD/MT
Source: Market Sources
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 8.5 |
Freights in USD/MT
Source: Market Sources
The Baltic Dry Index has climbed to 1,198 points as on 2Dec’16 due to the active demand for cargo ships. The index is an indicator of the global freight rate movements in respect to all classes of vessels, transporting all kinds of commodities, including coal and iron ore.
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