The imminence of the lull season in trading activity due to the Christmas festival and the New Year has started impacted the cargo shipping industry.
Demand for cargo ships has started shrinking and freight rates have remained almost at the rates assessed the week last. Ship brokers speculate freight rates to decline from the next week onwards.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 13.5 | 11.5 | 10 |
| South Africa to India | 11.5 | 11.5 | 8 |
| Indonesia to India | 7 | 8 | 6 |
Freights in USD/MT
Source: SteelMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 8.5 |
Freights in USD/MT
Source: SteelMint Research
The bearish outlook also has been reflected on the Baltic Dry Index. The index was recorded lower at 1,090 points as on 9Dec’16. The index is an indicator of the global movement in cargo shipping freight rates in respect to all classes of vessels, transporting all kinds of commodities, including coal and iron ore.
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