The Supramax market in the Continent and Baltic regions experienced a downturn during the week of January 20-27, with a lack of activity driving freight rates lower, reports S&P Global.
Downward Pressure
The dry bulk market remained under pressure throughout the week, characterized by weak demand and an oversupply of tonnage, particularly in the Continent and Baltic Sea. Brokers noted the sluggish market, with owners considering ballasting due to limited employment opportunities.
Activity was slow from the start, and the spot market declined due to weak demand, pushing owners to ballast their vessels. Chartering brokers emphasized the intense competition for limited cargo, illustrating the challenging supply and demand balance. Overall, the market struggled with low activity levels throughout the week due to insufficient cargo, limited opportunities, and weak demand.
Time Charter Rates
Time-charter equivalent rates for the Rotterdam-Aliaga ferrous scrap route, using both standard and scrubber-fitted vessels, decreased slightly this week. Platts assessed the rate for standard fuel ships at $7,400/day, down 11% from the previous week’s $8,326/day.
The rate for scrubber-fitted ships was assessed at $8,481/day, a 9% decrease from $9,370/day. In the North Atlantic, the US East Coast trans-Atlantic tonnage supply remained balanced, but spot rates began to soften due to limited activity. Data suggests a relatively balanced supply of Supramax vessels in the region.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: S&P Global
