Baltic Freight Index
|Freight Index for Dry Bulk Cargo Ships|
The ocean freight idea is mostly taken from Baltic Freight Index which is the leading freight indicator for spot fixtures dry bulk cargoes.
The stable freight rates always are expected by the charterers / shippers along with high availability of cargo ships for shipping dry bulk cargo. Cape Size / Panamax Vessels are in demand for shipping coal to China. The shipment to China has gone up in recent time and along with China, coal transportation to India is also in rise.
The regular shipments of coal from Indonesia to East Coast of India and West Coast of India are stable and availability of cargo ships are firm. The charter rates on these routes are also stable.
Beside this, the coal transportation from Indonesia and Australia to China Ports is same way stable for Far East routes includes CJK.
Fertilizer Shipments are steady and no major deviation noted. The steel shipment and project cargo from Far East CJK region to other countries are noted to be frequent and almost similar and steady.
The ship-owners kept the prices unchanged as Chinese imports by major importers were on lower side despite heavy demand. The same is with coal imports by Indian major importers and being the most volumetric cargo being transported to Indian Sub-continent which kept the freight charges unchanged. Bagged grained cargo shipment with in Indian Ocean, Bay of Bengal and Arabian Sea remained steady but the availability of cargo ship shown a lower trend. The lower cargo volumes from Indian Ports due to low level international trade met with long waiting for cargo ships.
The other reason may be low freight rates expectation from shipper and charterers around globe. The shipping companies undergoing heavy pressure from their lenders and finding difficult to match the lower freight cost.
Certainly the bunker fuel prices has gone up and it’s noted that almost by 40% the prices sky rocketed. Maybe the companies are now showing more interest for operating on no profit no loss model to maintain a regular funding for smooth operations of their cargo ships.
The shipping companies also getting it hard to find debt refinancing maybe as the lenders and bankers globally are not showing interest in further lending. The market is expected to get stable by next year in terms of expected freight by shipper / charterer and ship owners for dry bulk cargo transportation.