Dry bulk, freight & tanker rates to remain firm: SCI

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 Dec 2007

Speaking to CNBC-TV18, S Hajra, CMD, Shipping Corporation of India said dry bulk rates, freight rates and tanker rates remain firm, going forward. Hajra added that 2008 will remain a decent year for the world and Indian shipping, like 2007 has been. Excerpts from CNBC-TV18’s exclusive interview with S Hajra:Q: Has there been a significant improvement in freight rates, over the past quarter, that has improved the fortunes of shipping companies?A: Yes, particularly in the tanker market, which was going through a dull period. The tanker rates, from November onwards, have really moved up substantially. We can really call December as possibly the best December ever in the tanker history.One of the main reasons is the seasonal demand in the west, because they have been experiencing a severe winter. But alongwith that, there are other reasons, like some countries deciding to stockpile crude and products.So, definitely tanker rates have gone up and dry-bulk rate has remained very firm throughout 2007. There has been no dip in that. Going forward, I do feel that 2008 will remain a reasonably decent year for the world and Indian shipping, like 2007 has been.Q: Are there any numbers you would like to share, in terms of projections that you are expecting for dry-bulk as well as tanker rates for early 2008?A: The capesize rate is at USD 1,20,000-1,50,000 spot rate. This has been the best ever and has been going on for a long time. So, I do not think this will go up any further. But all the positives are still there. In the dry-bulk segment, there are a very large number of bulk carriers, which are well over 20-25 years old. Going forward, there is bound to be a lot of scraping which will also offset the new deliveries. So, dry-bulk rates for charter rates and freight rates will remain quite firm. We hope that even beyond the seasonal demand, tanker rates will remain quite firm.