For instance, the spot rates of bigger dry bulk vessels were up 91.80 per cent, at $70,000 per day this week against the average freight rate of $36,496 per day last year. Dry bulk vessels carry dry cargo like iron ore, coal, fertilisers, rock phosphate, cement clinker and salt.
Time charter rates of such vessels have shot up by 32.59 per cent, at $60,000 per day this week against last year's average of $45,250 per day.
India has over 70 dry bulk carriers owned by the Shipping Coporation of India (SCI), Great Eastern Shipping Company (GE Shipping), Essar Shipping, Mercator Lines, Apeejay Surendra, Poompuhar Shipping, West Asia Maritime and Five Stars Shipping.
"Following the congestion, total number of vessels in the queue was up 247 per cent at 59 last week and the delay per vessel is nearly 20 days. This would mean over 59 vessels are out of dry cargo transportation. As the backlog situation is set to worsen, the freight rates of dry bulk carriers have shot up over 90 per cent," an industry source said.
"Coal shipments from Australia are on the rise. Infrastructure constraints are resulting in congestion at the Newcastle Port, thereby resulting in higher turnaround time for ships," a senior GE Shipping executive said.
The freight rate is not just reflected to bigger dry bulk vessels, generally called Capesize. With the shortage of Capesize vessels, the demand for smaller vessels such as Panamax (smaller than Capesize), Handymax and Handysize.
For instance, freight rates of Panamax vessels have gone up by 60 per cent at $40,000 per day in this week againt last year's average of $25,000 per day.
Mercator Lines General Manager Atul Malhotra said, "The decision of Indian power plants opting imported coal has also given impetus to high dry bulk freight rates. Panamax and Handymax vessels are getting high quotes."
According to industry analysts, dry bulk freight rates are going to shoot up further as the Chinese demand expected to be strong with the 2008 Olympics coupled with port delays in Australia.
"The main suppliers of the incremental Chinese demand would be Brazil and Australia. The congestion due to infrastructure constraint would give impetus to bry bulk rates," they said.
Following the high freight rates, prices of a new Capesize vessel (of 150,000-170,000 dead weight tonne) has increased by 28.82 per cent at $80 million this year against $62.10 million during last year.
The prices of second hand Capesize vessel shot up by 53.70 per cent at $85 million in this year against $55.30 million last year.
