The main sea freight rates for all size of dry bulk vessels have declined about 30-40% over last one year on grounds of falling crude oil prices and limited cargo availability.
The freight rate index on coal cargoes have followed a range bound trend from all major coal exporting countries to India in Q1 FY16.Moreover, the global sea bulk vessel rates have been stable at an average of USD 6-12/MT over the quarter from all major export destinations such as Indonesia, Australia and South Africa.
It has been a weak market for bulk cargo owners as vessel freight rates have fallen to about 30-40% over the last one year. Meanwhile, Q1 of FY16 rates have also declined about 28-30% compared to the same quarter of last fiscal.
However, freight rates are strengthening in the month of July’15 owing to limited cargo availability. At present, the bulk size cargo freight market is going forward owing to stronger capesize, panamax and supramax rates since the beginning of July’15.
At present the freight of shipping coal in Panamax vessel from South Africa to India is assessed at USD 9.5-11.5/MT, from Indonesia to India at USD 6.5-8/MT and from Australia to India assessed at USD 10.7/MT respectively. Freight has risen marginally in last one month and is currently in the range of USD 6-13/MT for all size of bulk vessels.
80% of world trade is done through sea and a large portion of vessel freight comprise of oil charges. Declining oil price has reduced shipping cost, which also reduced the freight charges. Indian importers have been benefited since the beginning of the year 2015 as sharp plunge in oil prices have seen globally.
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