Bulk shipping freight market continued to remain under pressure on waning demand for commodities in the major economies in the world.
Shipping freight rates, as a result, have remained stable.
Slowdown in the Chinese economy has restricted global commodity trading, eroding demand for shipping vessels. As a matter of fact, China is the largest importer as well as exporter of many commodities, including coal and iron ore.
Current freight rates (coal cargoes)
1. Australia to India: USD 10/MT (Supramax), USD 8.50/MT (Pamanax)
2. South Africa to India: USD 9/MT (Supramax), USD 8/MT (Panamax)
3. Indonesia to India: USD 5/MT (Supramax), USD 5/MT (Panamax)
Current freight rates (iron ore cargoes)
1. India to China: USD 4.7/MT (Supramax)
Notably, the gradual rise in crude oil prices has also failed to bring about any increment in demand for oil rigs, and that would have had an impact on freight rates. On 10 Mar’16, crude oil prices were recorded at a higher rate of USD 35.23/barrel. The oil price upswing has been due to market speculations on possible production cut by big oil companies.
The Baltic Dry Index was reported at 388 on 11 Mar’16. The index is an indicator of shipping freight rate movements in respect to commodity cargoes.
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