Bulk shipping freight rates have remained depressed as iron ore shipments to China waned on weak demand.
Shipments of iron ore to China have gone lesser as production of steel declined in that country. Moreover, there were sufficient iron ore inventories available with steel makers there, ruling out immediate import requirements. According to a recent estimate, there is around 127 MnT of iron ore lying at Chinese ports.
However, there have been steady shipments of coal to China and India that kept demand for cargo vessels at moderate levels.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 15 | 12 | 10 |
| South Africa to India | 11 | 10 | 8 |
| Indonesia to India | 8 | 8 | 6 |
| Australia to China | 12 | 11 | 9 |
| Indonesia to China | 9 | 5 | |
| Australia to China | 11 | 5 | |
| Russia to India | 11 | ||
| Colombia to India | 19 | ||
| USA to India | 29 |
Current freight rates (iron ore cargoes)
|
Route |
Supramax |
| India to China |
10 |
Freights in USD/MT
Source: CoalMint Research
The Baltic Dry Index has shown a falling trend due to the bearish sentiments arising from the moderate demand for cargo vessels. On 26May’17, the index was recorded at 912 points, down from the 956 points as on 19May’17. The index is an indicator of the global movements in cargo shipping freight rates, in respect to all vessels, carrying all types of commodities, including coal and iron ore.
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