Bulk shipping freight rates have remained stable in the absence of any change in demand.
Persistence of weak demand in the major global economies coupled with availability of excess vessels have prevented bulk shipping freight rates from undergoing movements, apart from keeping the rates low.
Current coal freight rates
1. Australia to India: USD 5.2/MT (Panamax), USD 10.50/MT (Supramax)
2. USA to India: USD 11.75/MT (Panamax)
3. South Africa to India: USD 9.50/MT (Supramax), USD 9/MT (Panamax)
4. Indonesia to India: USD 5.50/MT (Supramax), USD 4/MT (Panamax)
Current iron ore freight rates
1. India to China: USD 4.9/MT (Supramax)
In the meantime, crude oil prices also have remained low to impact shipping freight rates. Crude oil prices were reported at USD 28.28/barrel on 28 Jan’16.
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 | 28.18 | 5.2 |
Panamax vessel prices in USD/MT
Oil prices in USD/barrel
Source: OPEC, Research
Leave a Reply