Bulk Shipping Freight Rates Stay Stable W-o-W

Bulk shipping freight rates have undergone no change from that a week-ago.

The prospect of iron ore shipments to China reducing in the near term has kept cargo vessel owners in a state of uncertainty over the future demand for cargo vessels.

There was an erosion of the bullish market sentiments due to the speculation of import demand for iron ore going down in China in the near term. If the demand declines, imports of iron ore to that country will decline, lowering demand for cargo vessels, and this will impact the freight rates.

Current freight rates (coal cargoes)

Freights in USD/MT
Source: CoalMint Research

Current freight rates (iron ore cargoes)

Freights in USD/MT
Source: CoalMint Research

However, import demand for coal, especially the Coking Coal, will remain strong in India as steel makers in the country are expected to operate their plants at high rates in the coming days. The strong import Indian demand will kept demand for cargo vessels intact.