Bulk shipping freight rates have remained at highs, primarily driven by strong import demand for coal and iron ore from China.
Strong import demand emanating from China has created demand for cargo vessels, resulting in the freight rates hovering at high rates.
With coal imports from North Korea being banned in China, imports of Coking Coal from Australia is on the rise. Imports of the coal type are also in an escalating mode in India, imparting upward momentum to freight rates.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 17 | 13 | 9 |
| South Africa to India | 14 | 12 | 7.5 |
| Indonesia to India | 13 | 8 | 5 |
Freights in USD/MT
Source: CoalMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 12 |
Freights in USD/MT
Source: CoalMint Research
As a consequence of the bullish market sentiments, the Baltic Dry Index has continuously been moving up. On 17Mar’17, the index was reported at 1,196 points, which is remarkably higher than that at 871 points, as on 1Mar’17. The index is an indicator of global freight rate movements in respect to all classes of vessels, transporting all kinds of commodities, including coal and iron ore.
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