Weekly Dry Market Monitor - Week 39, 2023

Posted by
Maria Bertzeletou
September 27, 2023
Brazilian iron ore export volumes increased in August, leading to a boost in Capesize tonne days

Throughout the last week of September, freight rates maintaining the strength observed in previous days. It appears that the third quarter will conclude with higher freight rates than those witnessed in the preceding two months. Notable increases were seen on a monthly basis in the freight market for large vessel sizes, particularly in the Capesize West Australia to China route and the Panamax Far East RV. There was also a robust sentiment in the Supramax category for the Continent-USG route, while the Handysize segment saw positive developments in the Continent-Brazil route.

Moreover, a boost in the freight market sentiment was received from increased coal volumes originating from Indian exporters, reaching various global destinations (see image above). However, it is anticipated that September will conclude at a slower pace compared to the peak levels of August. An intriguing prospect lies in the evolution of freight rates for October, as the onset of the winter season may affect the energy demands for coal in Asian markets. This could potentially prolong the firmness of freight rates in the Panamax and Supramax vessel size categories.

In the Capesize segment, September witnessed a gradual rise in rates, primarily driven by higher volumes of iron ore shipments from both Australia and Brazil. However, there are still challenges in the market due to an excess of ballast vessels. The decrease in pace that occurred in the final days of September showed some improvement compared to the beginning of the month.

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