OREANDA-NEWS. SGX freight derivative volumes totaled a record 46,588 contracts in January (+57% m/m; +375% y/y), while open interest averaged a record 83,535 contracts (+14% m/m; +351% y/y).

The Baltic Dry Index ended January down 34%, its largest monthly decline in two years, with Capesize rates seeing the steepest declines. Forward rate expectations also continued to reduce across the board, most significantly for Panamax and Supramax vessels.

A perfect storm of falling oil prices, slower iron ore and coal import demand, and fears surrounding China’s economic growth drove freight rates to fresh lows. Weak demand sentiment looks set to continue to plague the dry bulk freight market in the weeks ahead.