Bulk shipping freight rates have gone up due to the rising import demand for commodities, such as coal and iron ore.
Imports of iron ore and coal have risen in China due to the twin effects of higher prices of the commodities in the domestic market and prevalence of active steel production in that country. Imports of Coking Coal into India also have remained high, imparting upward momentum to the freight rates.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax |
| Australia to India | 13.5 | 13.5 |
| South Africa to India | 13.5 | 11 |
| Indonesia to India | 9 | 8 |
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
Cargo freight rates are speculated to go up further in the coming week due to the rising demand for cargo vessels.
The Baltic Dry Index has risen significantly to 1,086 points, as on 10Mar’17, driven the bullish sentiments arising from the strong demand for cargo vessels. On 1Mar’17, the index was lower at 871 points. The index is an indicator of global movement in freight rates in respect to all classes of vessels, transporting all kinds of commodities, including coal and iron ore.
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