Bulk shipping freight rates have undergone no movement and also showed no sign of any imminent deviation in the near future.
Prolonged weak demand for commodities in the major global economies has kept bulk shipping freight rates stable and on the low side. Besides, availability of surplus vessels has triggered intense competition among shipping companies, leading to stability in freight rates and prevented any upswing in freight rates.
Current freight rates for coal cargoes (panamax)
1) Australia to India: USD 5.1/MT
2) USA to India: USD 12.25/MT
3) South Africa to India: USD 5.40/MT
4) Indonesia to India: USD 3.35/MT
Current freight rates for iron ore cargoes (supramax)
1) India to China: USD 4.8/MT
Crude oil prices continued to fall and reached USD 22.89/barrel, as reported on 21 Jan’16. Crude oil prices are decisive parameters in shipping freight rate movements.
Crude oil prices vs coal cargo vessel freight rates
| Month | Crude Oil Prices | Vessel Freight, Australia to India |
| Jul’14 | 105.61 | 13.9 |
| Aug’14 | 100.75 | 14.2 |
| Sept’14 | 95.98 | 15.3 |
| Oct’14 | 85.06 | 15.1 |
| Nov’14 | 75.57 | 17 |
| Dec’14 | 59.46 | 11.5 |
| Jan’15 | 44.38 | 9.3 |
| Feb’15 | 54.06 | 10.3 |
| Mar’15 | 52.46 | 10.2 |
| Apr’15 | 57.3 | 9.9 |
| May’15 | 62.16 | 10.2 |
| Jun’15 | 60.21 | 10.7 |
| Jul’15 | 54.19 | 10.5 |
| Aug’15 | 45.46 | 9.5 |
| Sept’15 | 44.48 | 8.9 |
| Oct’15 | 48.1 | 9.5 |
| Nov’15 | 39.65 | 9 |
| Dec’15 | 31.45 | 6.15 |
| Jan’16 | 21.89 | 5.1 |
Panamax vessel prices in USD/MT
Oil prices in USD/barrel
Source: OPEC, Research
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