Decrease in Dry Bulk Freight Rates

Through the first three days of this week, the Baltic Dry Index has fallen by 46 points to 991 points. This represents a 4% decrease from the end of last week. Capesize, panamax, supramax, and handysize freight rates have all decreased from better levels seen at the end of last week. Global spot chartering activity has decreased this week. A total of 42 dry bulk cargoes have been chartered in the spot market so far this week. In comparison, 50 cargoes were chartered during the first three days of last week.

Increase in Dry Bulk Newbuilding Deliveries

Approximately 62 dry bulk vessels were delivered in September, a moderate increase from the 47 vessels that were delivered in August. September saw the delivery of 17 handysize vessels, 17 handymax vessels, 18 panamax vessels, and 9 capesize vessels. In comparison, August saw the delivery of 17 handysize vessels, 18 handymax vessels, 10 panamax vessels, and 3 capesize vessels. September's increase in dry bulk newbuilding deliveries have contributed to freight rates recently coming under pressure in all four of the dry bulk vessel classes.

Dry Bulk Vessel Scrapping Remains at a Firm Level

Approximately 33 dry bulk vessels were demolished in September, the same amount of vessels that were demolished in August. September saw the demolition of 19 handysize vessels, 2 handymax vessels, 9 panamax vessels, and 3 capesize vessels. In comparison, August saw the demolition of 16 handysize vessels, 5 handymax vessels, 9 panamax vessels, and 3 capesize vessels. While vessel scrapping has remained firm recently, it has not been enough to make up from the recent increase in new dry bulk vessels delivered to the market.