Brazil’s soybean exports to China in the dry bulk market for 2023 have surpassed those of other countries on a monthly basis, with China buying more soybeans from Brazil. However, the freight market sentiment is under pressure to decline in the second week of November, as the Capesize category experiences a sharp decline from its top in week 42.
The monthly freight charge for capsize vessels from Brazil to North China dropped by 20% to $18/tonne. Since the end of September, Panamax vessel freight rates have been continuously low at less than $40 a tonne from the Continent to the Far East.
On the Indo-ECI route, supramax vessel freight rates dropped to $11 per tonne, signifying a 13% monthly decline. Starting in early November, handysize goods rates on the NOPAC Far East route were less than $30 a tonne. Demand growth for dry bulk has drastically decreased for all vessel types, with a particularly strong dip for Panamax and Handysize. Chinese ports are overrun with dry bulk ships, with the Supramax and Panamax segments seeing an increase in ship congestion, yielding one of the highest weekly peaks starting in week 40.