Positive signs on freight horizon

Renewed activity in the commodity markets following the revival of the financial sector may lead to a positive impact on the freight market in six months, Mr S. Hajara, Chairman and Managing Director of Shipping Corporation of India (SCI), opined.
A modest recovery, he believed, had already begun. The Baltic Dry Index, which had fallen from 11,700 in May 2008 to a low of 660 in November 2008, had moved up to around 1,700, Mr Hajara pointed out.
The meltdown had affected the dry bulk sector the most, which registered a fall of around 90-95 per cent. However, it was now on the path of recovery, he pointed out.
In comparison, tanker freight rates had only fallen by 20-30 per cent.
Explaining the employment situation in the industry, Mr Hajara said that the shipping industry was relatively isolated as the demand for seafarers had always exceeded the supply. As a result, there had not been any job losses in the sector, he pointed out at the 46th National Maritime Day celebrations.
There were around one lakh active seafarers, of whom 40,000 were at the officers’ level, he explained.
Referring to the shortage of funds for ship acquisition, he said that with the external commercial borrowings (ECBs) route drying up, the industry was looking for alternative sources of funding, Exim News Service reported.

Source: Transportweekly