Bulk shipping freight rates have continued to exhibit a stable pattern.
Persistence of weak demand for commodities in the major global economies is the primary cause of stable freight rates.
Current freight rates of panamax vessels:
1) Indonesia to India: USD 5/MT
2) Australia to India: USD 9/MT
3) South Africa to India: USD 9/MT
In addition to weak demand, availability of excess vessels and intense competition among shipping companies are also contributing to stability in freight rates.
Meanwhile, falling crude oil prices have acted as a dampener to the freight market. On 17 Dec’15, crude oil prices were reported at USD 31.49/barrel.
In outllook, the freight market seems to remain bearish in near term.
Month-wise crude oil prices with vessel freight
| Month | Crude Oil Price | Vessel Freight, Indonesia to India |
| Jul’14 | 105.61 | 9 |
| Aug’14 | 100.75 | 8.5 |
| 14-Sep | 95.98 | 9.1 |
| Oct’14 | 85.06 | 8.7 |
| Nov’14 | 75.57 | 9.9 |
| Dec’14 | 59.46 | 8.6 |
| Jan’15 | 44.38 | 5.5 |
| Feb’15 | 54.06 | 6 |
| Mar’15 | 52.46 | 6.7 |
| Apr’15 | 57.3 | 6.5 |
| May’15 | 62.16 | 6.1 |
| Jun’15 | 60.21 | 7.2 |
| Jul’15 | 54.19 | 7.1 |
| Aug’15 | 45.46 | 6.3 |
| Sept’15 | 44.48 | 6.3 |
| Oct’14 | 44.34 | 6 |
| Nov’15 | 39.65 | 5.5 |
| Dec’15 | 31.49 | 5 |
Panamax vessel prices in USD/MT
Oil prices in USD/barrel
Source: OPEC, Research
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