Supramax hitting 10-month-high & Cape market also reaches a nearly three-month high

In the dry bulk shipping market, freight rates for various types of vessels have seen a wave of increases.

Supermax-type vessels achieve the highest earnings in October. During the week ending on Friday, the Baltic Exchange's freight rate index for Supramax reached its highest level since November of last year. Shipping brokers attribute this to the ongoing tight supply of capacity, especially in the Black Sea and Mediterranean regions. Baltic Exchange's superamax 10TC freight rate index has seen continuous increases recently, reaching over $14,900 per day, the highest point in over ten months. On November 2nd of last year, this data had dropped from $15,281 per day the previous day to $14,649 per day and had remained below that level since then. The increase on last Friday continues a trend of nearly daily increases since August 7th when the average income was $7,967 per day.

Cape market also reaches a nearly three-month high. In addition, the latest data shows a significant improvement in the past week in the spot market for Capesize bulk carriers due to a large influx of coal from East Australia to South China. The Baltic Exchange's 5TC spot average rate for the five major routes of Capesize vessels rose by 30% over the past seven days, reaching nearly $17,300 per day on last Friday, marking the highest level in almost three months. BRS Shipbrokers wrote in a report last Friday, 'The (Capesize shipping market) had a strong start this week, with a significant increase in coal transportation from East Australia to South China in October, a situation that seems likely to continue for one to two months.' 'The increase in demand is because coal from East Australia is more competitively priced than North China coal.' Analysts at the Baltic Exchange also noted that the rise in the average spot rate for Capesize dry bulk vessels is attributed to the high demand for coal transportation from the East Coast of Australia to the Far East. The Baltic Exchange reported that the average spot rate for the benchmark Capesize iron ore route saw a significant increase this week, indicating that China is importing a substantial amount of iron ore. According to the exchange, the average spot rate for the C14 round trip between Brazil and China increased by 27.8% over the past week, reaching nearly $14,900 per day. The average spot rate for the C10 round trip between Australia and China also increased by 19.6% during the same period, reaching $17,500 per day. According to continued information from the Baltic Exchange, Fortescue Metals Group chartered an unnamed Capesize vessel on Friday to transport 160,000 tons of iron ore from Port Hedland, Australia, to Qingdao, China, at a rate of $9.55 per ton. A week earlier, Rio Tinto chartered two similar vessels to transport approximately 170,000 tons of iron ore from Dampier, Australia, to Qingdao, at rates ranging from $8.70 to $8.85 per ton.

BDI reaches a new high in four months. In addition to the Supra and Cape vessels mentioned above, the Panamax 5TC reached $15,200 per day this week, and Handysize 7TC rates rose to nearly $12,100 per day on Friday. In this context, the overall Baltic Dry Index (BDI) has reached its highest point in four months. As of the end of the trading week on September 22nd, the BDI index reached 1,593 last week, the last time it was higher was on May 11th when it reached 1,608. Shipping data and analysis company Signal Ocean stated, 'Freight rates for various types of vessels have seen significant increases over the past week, indicating a strong upward trend.' Analysts at this shipping data platform wrote in their weekly dry bulk report last Wednesday that the market's upward momentum was boosted by policymakers' stimulus measures, and the market also had an optimistic view of Chinese economic activity. China has recently implemented a series of measures to boost economic growth, supporting the real estate market and the renminbi, including reducing the deposit reserve ratio for Chinese banks. Signal Ocean stated, 'This effectively injected liquidity into the financial system, further highlighting China's determination to sustain economic momentum.' Furthermore, Signal noted that congestion in the Panama Canal helped push up freight rates for most dry bulk vessels, with Supramax-type vessels being the most affected. The company stated, 'The rise in the Supramax shipping market is surprising, with its 5-day moving average exceeding the highest level since the summer.