Bulk freight rates continue to head north

Vessel freight rates for bulk commodities have continued their uptrend this week, as per SteelMint assessment. Improved demand and shortage of ships led to the rise in freight rates. The freight rate of an iron ore-loaded supramax vessel from the east coast of India to China edged up w-o-w to $13.5-14/t as against $13/t last week.

Increase in ship movements was noticed this week, as demand of agro products like grains, corn and soyabeans have remained high and are imported by China. The shipping companies have been trying to cope up with high demand in the market, a Singapore-based shipbroker source said.

Asia-Pacific supramax dry bulk (cargo capacity 50,000-55,000 t) freight rates continued to rise as shortage of ships are still a concern amid high demand, as per sources.

Meanwhile, capesize dry bulk (cargo capacity 160,000-170,000 t) freight rates kept inching up on strong demand. As per sources, shipowners are witnessing better demand in the market for October loading dates.

High demand and the recent hike in coal prices have maintained the momentum that is driving rates higher. Australian premium hard coking coal prices increased by $5/t d-o-d to $320/t FOB on 19 September amid limited high-CV supplies. Demand from end-users in India, especially for October loading and Q4 cargoes, is adding upward pressure to prices.