The bulk shipping industry is far from any recovery from the slump caused by oversupply of vessels.
Shipping freight rates have remained stable, without any sign of improvement at least within this year.
Vessels have become oversupplied as global trade in respect to commodities has retarded primarily on account of slowdown in the Chinese economy. China is the largest importer as well as exporter of many commodities, and the prevailing slowdown in its economy has hindered global trade; taking a toll on the shipping freight industry.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 12 | 8.5 | 6 |
| South Africa to India | 9.5 | 7.5 | 5 |
| Indonesia | 6.5 | 5.5 | 4 |
Rates in USD/MT
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 7 |
Rates in USD/MT
Despite the recent rise in crude oil prices, demand for oil rigs has not picked up; so, no improvement in demand for cargo ships.
The Baltic Dry Index, however, underwent an improvement to 450 points, as on 1 Apr’16. The index is an indicator of freight rates of all types of shipping vessels transporting commodities, including coal and iron ore.
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