It has been a month with signs of improved activity in the number of fixtures concluded, but rates have nevertheless continued their downward trend. Several lineroperators are scaling down capacity on their services, resulting in an increasing number of vessels, ranging from 2,000 teu upto post-panamax, being available as relets. The number of takers for such vessels is however few and far between and the number of transactions concluded limited.
The segment from 1 300 ? 1 900 teu is still under pressure with continued drop in rates and a buildup of prompt tonnage as a result. Several owners have been forced to accept considerable ballasting and/or to look at alternative cargoes in order to secure employment for their vessels. In the segment around 1,000 teu, the oversupply of tonnage is increasing, resulting in more ballasting, shorter periods and lower rates. This trend is expected to continue in the time ahead.
The Dry Bulk Market from the Platou Monthly October 2008
The freight market for bulk carriers collapsed completely over the last month bringing freight rates basically down to operating cost for all segments. With expectations of much weaker demand in the coming months, problems in obtaining letter of credit etc, huge inventory depletions are going on.
In this phase, the shipping activity has been reduced to a minimum. Less activity has also resulted in substantially lower port congestion and thereby increased number of available ships.