After rising in the first half of September, dry bulk freight rates for larger-sized vessels fell sharply, led by the Capesize sector, pressured by a drop in demand for iron ore and coal due to falling steel production in China. In spite of some spillover weakness, the Handysize/Supramax sector remained more robust, holding steady amid underpinning from grains and oilseeds demand. Timecharter activity continued to dominate the market, with short and medium period rates quoted higher than spot valuesat times. In South America, heavy rains in Brazil delayed loading in the ports of Santos and Paranagua, creating congestion which is likely to last until late October. Due to weaker Capesize and Panamax markets, the Baltic Dry Index (BDI) declined by 10%, whereas the IGC Grain Freight Index (GFI), which does not include Capesize rates, actually increased by 0.5%.
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