Shedding the depressed outlook, the bulk shipping freight rates have started showing some improvement on the back of strengthening demand for commodities.
Most of the freight rates have undergone slight increments due to the heavy shipments of coal and iron ore to China. Market participants foresee further improvement in the freight rates on account of increased shipping activity.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 12 | 11 | 9 |
| South Africa to India | 10.5 | 9.5 | 6.5 |
| Indonesia to India | 6 | 7.5 | 5 |
Freights in USD/MT
Source: SteelMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 8 |
Freights in USD/MT
Source: SteelMint Research
The Baltic Dry Index rose to a significant height on 18Nov’16 at 1,257 points due to the bullish sentiments arising from strengthening demand. The index is an indicator of movement in global freight rates in respect to all classes of vessels, transporting all kinds of commodities, including coal and iron ore.
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