Ship freight declining during last few months

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

27 Feb 2009

The ship freight on International Waterways is continuously declining during the last few months. This is especially so for the Drybulk sector where the drop in freight/charter rates which commenced from August, 2008 took a steep fall in September, October, November and December, 2008. As far as liner sector is concerned, the decrease is ranging between 70.96% to 78.57% on India-Europe Sector, 50% to 87.5% on India-Far East Sector and 50% to 78.57% on the India-Middle East Sector. 50-70% from Indian sub-continent to Far East sector, Middle East sector and Europe sector. Similarly, the freight is also declining on the return legs.
The dry bulk sector has also been most affected during the period in question. The Baltic Dry Index (BDI) serves as an indicator of the dry bulk market and its steep fall reflects the freight situation in the dry bulk market. The overall fall in BDI from July, 2008 to January, 2009 works out to a fall of 89.87% in December, 2008. This index fell from 8934 in July, 2008 to 743 in December, 2008. The index improved in January, 2009 to 905, but the levels are far below breakeven levels for bulk carrier owners.
This information was given by the Minister of Shipping, Road Transport and Highways, Shri T.R. Baalu in a written reply in the Rajya Sabha yesterday.

Source: PTI