The cost of freight has fallen anew for alumina and other dry cargoes on handysize ships within the Asia Pacific, dragged by a confluence of idle ships in Southeast Asia and the east and west coasts of India, sources said this week.
It will now cost $23/mt to ship 30,000 mt of alumina from Bunbury or Kwinana ports in Western Australia to Qingdao in northern China, for loading in the next 30 days, compared with $25/mt last week and $26/mt two weeks ago.
The bearish trend began nearly five weeks ago, with the rate for this particular route losing $6/mt or 21% during the period.
A Singapore-based shipowner attributed the high incidence of unemployed ships in Asia to a number of new vessels which have recently launched operations in the region or are slated to. The new buildings were commissioned two to three years ago when the freight market and general economic conditions were more buoyant.
A number of ships currently anchored off India's east coast were waiting to load iron ore to Asia and other destinations, while those along the west coast were waiting for fertilizers from the Persian Gulf to other regions, the source said.
Shipping activity within Asia is expected be thin in January as well due to the holiday season, she added. "It's getting worse."
Handysize usually refers to dry bulk ships with deadweight of 15,000 to 35,000 tons.
--Joanna Lim
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