After last month's slump, ocean freight has started firming up ever since Hurricane Katrina ravaged the oil refineries in the US.
The freight shot up by 20 per cent in the second week of September across all segments compared with the first week. This was mainly because of the beginning of winter in Europe and increased crude oil imports by Hurricane Katrina-hit refineries in the Gulf of Mexico, a shipping analyst said.
The rally in freight would help Indian shipping companies register a healthy performance as China was also planning to import more iron ore to raise its inventories, he said.
According to Mercator Lines Director Shalabh Mittal, the demand will further surge once the hurricane-hit refineries resume operations. "The demand will be more as very large crude carriers undertake voyages of about 70 to 90 days," Mittal said.
Nine out of the 17 oil refineries in the hurricane area, with about 1.4 mbd capacity each, are non-operational and shipping companies will explore crude oil movement from West Africa and Venezuela to satisfy the requirements of