Bulk Shipments  

• After making multi-year highs during September, the BDI settled at 1767pts on Friday last week. The price correction was mostly driven by weakening Cape and Panamax indices, with Time Charter average price for Capesize vessels falling almost 40% since the beginning of September. Panamax TC averages fared slightly better posting a fall of only 25% during the same period!
• Coming into the traditionally strong Q4 period, sentiment in the Supramax and Handysize sectors (vessels typically used for bulk sugar transportation) appears to be holding up well, with little change in the TC averages for these smaller vessels.
• Drone strikes hit Saudi Arabia’s oil facilities on the 14^th September causing significant damage and sparking fears over supply disruptions and price rises. Spot Singapore HS Fuel Oil prices rallied $150/mt in the first few days after the attack. Before the end of the month, Brent crude prices had retreated below the $60/bbl mark on fading supply concerns and weaker demand outlook.

Containerised Shipments  

• Even with a number of blank sailings (where a voyage is cancelled due to lack of demand), September saw four weeks of declining container spot rates on the Asia to US trade, contrary to what would usually be expected in the build-up to Golden Week.
• However, an early Chinese New Year, further blank sailings and the rolling out of low sulphur fuel into carriers’ fleets, is expected to reverse this trend in the latter part of Q4.