Bulk shipping freight rates have remained stable as demand has not improved.
Availability of excess vessels vis-à-vis demand has put pressure on the freight rates, which remained at the rates the week last. Coal shipments to China also have failed to bring in any improvement to the depressed freight rates.
Current freight rates (coal cargoes)
| Route | Supramax | Panamax | Capesize |
| Australia to India | 12 | 11 | 8.5 |
| South Africa to India | 10 | 9 | 5.8 |
| Indonesia to India | 7 | 7 | 5 |
Freights in USD/MT
Source: SteelMint Research
Current freight rates (iron ore cargoes)
| Route | Supramax |
| India to China | 8 |
Freights in USD/MT
Source: SteelMint Research
However, demand for cargo vessels is likely to strengthen in the medium term. This likelihood has lifted the Baltic Dry Index to 1,045 points on 11 Nov’16 from 974 points on the previous day. The index is an indicator of the global freight rate movement in respect to all classes of vessels, transporting all kinds of commodities, including coal and iron ore.
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