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Increase in freight rates good news for shipping firms

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The end of 2013 and the beginning of the New Year have encouraged shipping companies in India, with freight rates touching a three-year high, mostly on the back of increased demand for movement of oil and iron ore.

Shipping companies which have been struggling in a lean freight market in the last few years are, however, still cautious about the outlook for the rest of the year.

The Executive Chairman of the Great Eastern Shipping Company, says: “Well, at the moment, things look good. But probably it is seasonal as there is increased movement of oil and dry cargo in winter. But whether it is sustainable or not remains to be seen as there is still excess tonnage in the market.”