Cargo shipping activity has been subjected to positive signs as demand for ships have increased due to the active coal and iron ore imports in the Asian region.
Of late, shipments of Coking coal from Australia to India and China have increased remarkably. Also, iron ore shipments to China have gain significant momentum.
Market participants expect some improvement in the freight rates in the near term as iron ore shipments to China have been increasing.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax |
| Australia to India | 14.5 | 11 |
| South Africa to India | 12 | 9 |
| Indonesia to India | 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 positive outlook on the cargo shipping sector has led the Baltic Dry Index to climb up to 720 points as on 2 Sep ’16. The index is an indicator on the global freight rate movements in respect to all classes of vessels, transporting all kinds of commodities, including iron ore and coal.
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