The bulk shipping freight rates have remained stable despite healthy demand for cargo ships on account of bulky coal imports into China and India.
Some market participants were of the view that demand for cargo ships will gain further in the next week as stocking of raw materials in China will intensify ahead of the week long holidays that will begin in the end of the next week in that country. As such, there is an indication for the freight rates to go up marginally in the coming week.
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
In the meantime, the Baltic Dry Index has climbed to 941 points, the highest during the last twelve months, on bullish sentiments arising on the prospect of demand for cargo ships going up due to stocking of raw materials ahead of the holidays. The index is an indicator of global freight rate movements in respect to all classes of vessels, transporting all kinds of commodities, including coal and iron ore.
Leave a Reply