Shanghai Shipping Exchange: International fuel oil prices fluctuate frequently in the short term, while the trends in small and medium-sized shipping rates and charter rates diverge.

What are the market factors behind the differentiation in freight rates among small and medium-sized ships under high oil prices?

According to a weekly report on the Far East dry bulk shipping market released by the Shanghai Shipping Exchange on March 21, ongoing geopolitical conflicts continue to push up international fuel prices. Supported by rising costs, the freight rates on international dry bulk shipping routes remain high overall. Looking at different ship types, in the Capesize market, demand for iron ore transportation was still decent at the end of last week and the first half of this week. Coupled with the continued rise in oil prices, freight rates on transoceanic routes increased. In the second half of the week, Australian route demand weakened first, and sporadic transactions could not sustain high freight rates, leading the Pacific route market into a downward trend. In the Panamax market, high oil prices somewhat hindered demand for coal and grain transportation but also provided some support for freight rates, which fluctuated slightly daily. In the Supramax market, rising oil prices increased operational difficulties, activity in OP transactions declined, and a wait-and-see sentiment grew, causing daily rental rates to slightly decrease. On March 19, the Shanghai Shipping Exchange released the Far East dry bulk freight index at 1722.47 points, up 1.9% from the previous period.

Daily Economic News