Bulk shipping freight rates have not undergone any upward movement as demand did not strengthen from the earlier levels.
Imports of iron ore in China have declined as steel production in China went down as a result of falling steel prices. Demand for cargo vessels has remained moderate as a result.
However, shipments of coal are keeping demand for cargo vessels steady at moderate levels. Demand for cargo vessels is expected to increase in the near term as imports of coal are expected to increase in China and India.
Current Freight Rates (Coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 15 | 14 | 10 |
| South Africa to India | 12 | 13.5 | 9 |
| Indonesia to India | 8 | 9 | 6 |
| Australia to China | 12 | 13.5 | 9 |
| Indonesia to China | 9 | – | 5 |
| Australia to China | – | 11 | 5 |
| Russia to India | 15 | – | – |
| Colombia to India | – | – | 19 |
| USA to India | 29 | – | – |
Source: CoalMint Research
Freights in USD/MT
Current Freight Rates (Iron ore cargoes)
| Route | Supramax |
| India to China | 10 |
Source: CoalMint Research
Freights in USD/MT
Baltic Dry Index(BDI):
The Baltic Dry Index has shown an improvement of late as there was a marginal increase in demand for Capesize vessels.
On 11 May’17, the index was reported at 1,012 points, which was higher than the index at 994 points as on 5 May’17.
The index is an indicator of the global movement in cargo vessel freight rates, with respect to all classes of vessels, carrying all kinds of commodities, including coal and iron ore.
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