Bulk freight rates have continued to remain stable this week.
The stability has persisted as demand did not undergo any improvement. Shipping freight rates are assessed this week in the range of USD 6-12/MT.
Demand for commodities has remained uniformly low as a result of weak global economies, leading to slight stability in shipping freight market. Besides, excess vessel capacity and intense competition among shipping companies have also contributed considerably to the lackluster freight market.
Soft crude oil prices have also played a decisive role in sustaining inactive freight rates. Crude oil prices are decisive parameters in influencing freight rate movements and prices were reported at USD 44.34/barrel on 29 Oct’15.
Crude oil prices vs. vessel freight rates
|
Month |
Crude Oil Price |
Vessel Freight, Indonesia to India |
| Jul’14 |
105.61 |
9 |
| Aug’14 |
100.75 |
8.50 |
| Sep-14 |
95.98 |
9.10 |
| Oct’14 |
85.06 |
8.70 |
| Nov’14 |
75.57 |
9.90 |
| Dec’14 |
59.46 |
8.60 |
| Jan’15 |
44.38 |
5.50 |
| Feb’15 |
54.06 |
6 |
| Mar’15 |
52.46 |
6.70 |
| Apr’15 |
57.3 |
6.50 |
| May’15 |
62.16 |
6.10 |
| Jun’15 |
60.21 |
7.20 |
| Jul’15 |
54.19 |
7.10 |
| Aug’15 |
45.46 |
6.30 |
| Sept’15 |
44.48 |
6.30 |
| Oct’14 |
44.34 |
6 |
Panamax Vessel prices in USD/MT
Oil prices in USD/barrel
Source: OPEC, Coalspot
Commenting on the prevailing freight market, personnel in a reputed shipping company in South India said that he expected some improvements in bulk freight rates towards the end of this year.
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