Bulk shipping freight rates are again expected to go down after the lackluster demand prevailed during the Chinese holidays.
Although cargo shipping activities have gained momentum after the Chinese holidays, freight rates were not positively impacted.
There has been recent speculation of the freight rates to go lower in the coming week as the number of available vessels seems to be in excess of the demand.
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
| Route | Supramax |
| India to China | 10 |
Freights in USD/MT
Source: SteelMint Research
Despite the gloomy outlook, the Baltic Dry Index has shown an improvement, moving up to 892 points, as on 14Oct’16. The rise in the index could be attributed to the resumption of trading activities after the week-long holidays in China. The index is an indicator of movement in vessel freight rates, in respect to all classes of vessels, transporting all types of commodities, including coal and iron ore.
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