Bulk shipping freight rates have continued to remain depressed as there was no improvement in demand.
Demand for cargo vessels has remained at moderate levels due to lower iron-ore shipments to China. In that country, lower steel production and adequate inventories available with the steel makers have reduced imports of iron ore.Additionally, relatively weak demand for South African coal also has shrunk demand for cargo vessels along the Asian routes.
However, coal shipments have moved uninterruptedly along the key Asian routes that kept demand for cargo vessels at moderate levels.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 15 | 11 | 10 |
| South Africa to India | 11 | 10 | 8 |
| Indonesia to India | 8 | 7 | 6 |
| Australia to China | 12.5 | 11 | 9 |
| Indonesia to China | 8 | 5 | |
| Australia to China | 11 | 9 | |
| Russia to India | 11 | ||
| Colombia to India | 19 | ||
| USA to India | 27 |
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 10 |
Freights in USD/MT
Source: CoalMint Research
The Baltic Dry Index has shown a sliding trend due to the bearish sentiments arising from the moderate demand for cargo vessels. On 2Jun’17, the index was reported lower at 830 points. The index was higher at 900 points as on 30 Mar’17. The index is an indicator of the global movements in freight rates in respect to all classes of cargo vessels transporting all kinds of commodities, including coal and iron ore.
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