Bulk shipping freight rates are expected to remain at the prevailing rates in next week despite demand for cargo vessels expected to rise after the Chinese New Year holidays.
Availability of surplus vessels is likely to offset the impact of the expected gain in demand. Market participants foresee the freight rates to remain flat due to a large number of vessels waiting for deployment.
However, demand for vessels is expected to rise after the Chinese holidays as the functioning of factories will lead to a resumption of imports.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 13 | 10 | 8.5 |
| South Africa to India | 11 | 10 | 8 |
| Indonesia to India | 7 | 7 | 5 |
Freights in USD/MT
Source: CoalMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 8.5 |
Freights in USD/MT
Source: CoalMint Research
The Baltic Dry Index is reported lower at 770 points, as on 2 Feb’17, due to the low demand for cargo vessels during the Chinese holidays. The index is a general indicator of movement in cargo vessel freight rates with respect to all classes of vessels, transporting all kinds of commodities, including coal and iron ore.
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