Experts hold the view that global shipping freight rates, which have been down since 2008, are likely to perk up as the earthquake aftermanth in Japan is expected to lead to an escalation in shipping activities since the island nation will require raw materials imports for reconstruction and rebuilding, according to Exim News Service.

On March 11, the Baltic Dry Index, the benchmark for freight trade, ended 1.56 per cent up. The index, which measures the rates for chartering of carriers, has shot up by nearly 50 per cent from its 2011 low hit on February 4. Since the global financial crisis in 2008, the index has fallen drastically from its record highs.

A senior official of an Indian shipping company feels that unless there is some major disruption and Japan lands in further trouble, global freight rates may get better in the long run as it will look to reconstruct from the nature’s fury. "But in the short term, trade could be affected," he said.

Analysts foresee a surge in dry bulk rates in the near future as Japanese power plants need to re-stock coal inventories and steel firms may import more iron ore to rebuild their damaged production.

Another domestic shipping company official said the crisis could lead to a rise in demand for steel, iron ore, and cement to Japan. "But freight rates can only act as a supportive mechanism to the growth in global freight rates in the months to come", he said.

In the near future, demand for shipping is expected to take a hit as trade volumes are likely to be disrupted following the disaster. An analyst at Drewry Shipping Consultants opined that demand for shipping may be higher in the medium to long-term as Japan will look to import many of the necessities, including oil and cement.