The outlook on bulk shipping freight rates has become bearish as the number of available vessels again out-numbered the demand.
According to inputs received, demand for cargo vessels has weakened as shipments of commodities dipped. Shipments of iron ore also is headed for a lull towards the terminal months of 2016. Rio-Tinto, the second largest iron ore exporter in the world, has already lowered its forecast for iron ore sales during the rest of the months of 2016.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 12 | 10 | 10 |
| South Africa to India | 10 | 9 | 8 |
| Indonesia to India | 7 | 7 | 6 |
Freights in USD/MT
Source: SteelMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 10 |
Freights in USD/MT
Source: SteelMint Research
The Baltic Dry Index has shown a declining trend, primarily due to the negative outlook. On 21 Oct’16, the index was recorded lower at 842 points. The index is an indicator of movement in global cargo shipping freight rates in respect to all classes of vessels, transporting all types of commodities, including coal and iron ore.
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