Bulk shipping freight rates have not undergone any notable deviation as demand continues to be weak.
Slowdown in the major global economies has reduced demand for commodities, leading to stability in shipping freight rates.
Current freight rates (panamax):
1) Australia to India: USD 6.15/MT
2) US to India: USD 14.25/MT
Crude oil prices, remaining low, have also failed to bring about any notable movements in freight rates. On 22 Dec’15, crude oil prices were reported at USD 31.15/barrel. Besides, availability of excess vessels and intense competition among shipping companies have also contributed decisively to the lackluster freight market.
Month-wise crude oil prices with vessel freight
| Month | Crude Oil Prices | Vessel Freight, Australia to India |
| Jul’14 | 105.61 | 13.9 |
| Aug’14 | 100.75 | 14.2 |
| Sept’14 | 95.98 | 15.3 |
| Oct’14 | 85.06 | 15.1 |
| Nov’14 | 75.57 | 17 |
| Dec’14 | 59.46 | 11.5 |
| Jan’15 | 44.38 | 9.3 |
| Feb’15 | 54.06 | 10.3 |
| Mar’15 | 52.46 | 10.2 |
| Apr’15 | 57.3 | 9.9 |
| May’15 | 62.16 | 10.2 |
| Jun’15 | 60.21 | 10.7 |
| Jul’15 | 54.19 | 10.5 |
| Aug’15 | 45.46 | 9.5 |
| Sept’15 | 44.48 | 8.9 |
| Oct’14 | 48.1 | 9.5 |
| Nov’15 | 39.65 | 9 |
| Dec’15 | 31.15 | 6.15 |
Panamax vessel prices in USD/MT
Oil prices in USD/barrel
Source: OPEC, Research
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