Bulk shipping freight rates have remained almost at the rates prevailed the week last. Demand for cargo vessels had been low as trading activities shrunk due the festive season.
However, the freight rates are expected to rise as Crude Oil prices are on the rise. The latest Crude Oil price was reported at USD 52.25/barrel.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 13.5 | 11.5 | 10 |
| South Africa to India | 12 | 12.5 | 8 |
| Indonesia to India | 7 | 8 | 6 |
Freights in USD/MT
Source: SteelMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 10 |
Freights in USD/MT
Source: SteelMint Research
The outlook is optimistic,arising out of the prospect demand for cargo ships strengthening on account of China’s continuing infrastructure development, apart from economic growth in other regions of the world.
The Baltic Dry Index has shown an upward trend driven by the optimistic outlook. The latest value of the index was reported at 961 points. The index is an indicator of global movement in cargo freight rates in respect to all classes of vessels, carrying all kinds of commodities, including coal and iron ore.
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