Dry bulk vessel freight rates remain sluggish on limited fixtures

Freight rates for shipping dry bulk commodities in Supramax and Capesize vessels inched down this week, as per SteelMint's assessment. The freight rate of an iron ore-loaded Supramax vessel from the east coast of India to China was heard at $13/tonne (t), largely stable against last week.

Asia-Pacific Supramax dry bulk (cargo capacity 50,000-55,000 t) freights drop slightly as lack of cargo has delayed the exchange in some routes. Weak market sentiment plays a vital role in lowering offers by shipowners due to the presence of too many ships and lack of demand from mid-China.

"Last week, vessel freight rates dropped significantly, mainly due to more ships. But the cargo volume is still strong," a Singapore-based shipowner stated.

Capesize dry bulk (cargo capacity 160,000-170,000 t) freights have weakened on sluggish sentiment. According to sources, limited fixtures have been scheduled, as shortage of cargo is seen due to the long tonnage list. Decline in freight is also because the requirement of large-sized vessels is decreased, which has slowed down fixtures among various routes.