Bulk freight rates
have increased since the start of the year, underpinned by expensive oil and a lack of available vessels in major global markets, such as China.
Brent crude oil prices were at $67.20 per barrel at the end of trading on March 9, up from $65 per barrel on February 22, which was itself an increase of 74.5% since October 2020.
Freight costs for panamax and supramax vessels - handysize vessels typically with cargo volume of up to 50,000 tonnes - for the route between India and China have soared in recent weeks. The East Coast India-China panamax route recorded by Simpson Spence Young (SSY) hit $21.90 per tonne on March 8, up by 21.7% week on week.
“One of the main reasons why freight rates have gone up sharply for...