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- SGX freight derivative volumes totaled a record 62,250 contracts in March (+55% m/m; +263% y/y), while open interest also hit a new record averaging 113,088 contracts during the month (+14% m/m; +300% y/y).
- The Baltic Dry Index ended March up 30%, its largest monthly rise since July 2015 as all vessel classes experienced an increase in spot charter rates. Forward rate expectations also saw moderate improvements across the board.
- Seasonal strength in demand may continue to drive freight rates moderately higher through Q2. The South American grains season has started to support rates for smaller vessel classes in recent weeks, while stronger iron ore shipments may also boost Cape rates in the near-term. A question mark remains however over whether a seasonal pick-up in demand ultimately risks slowing down recently strong scrapping rates.
FULL MONTHLY REPORT AVAILABLE <HERE>
SGX FREIGHT CHARTBOOK AVAILABLE <HERE>
Historical monthly reports and articles are available at the Knowledge Centre on the SGX website here.
For further details on SGX freight products, please contact the SGX team or alternatively visit the SGX website here.
