Time charter equivalent rates for capesize, panamax and supramax vessels were much lower in the first week of 2020 than the rates registered during the same period over the past three years, according to data from S&P Global Platts.
The drop in rates is contrary to expectations that IMO 2020’s 0.5% sulfur regulation would prompt higher freight levels due to the expense of clean marine fuels, with shipowners struggling to pass on the bunker cost to charterers.
The ebb in cargo flows toward in late 2019 and early 2020 is being blamed for the current sluggishness, S&P Global says.
Meanwhile, the Baltic Dry Index skidded to its lowest in nine months today, weighed by shrinking demand across all vessel categories.
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