In week 38 of 2026, GMS provided a report on the state of transportation and the oil market, indicating fundamental changes in freight rates and market conditions. Activities on the coasts have increased compared to previous weeks, and the focus on freight rates is shifting.
Decline in Freight Rates and Coastal Activities
Freight rates have decreased from last week's peaks. The Baltic Dry Index dropped to 3,336 points on Thursday, down from 3,521 points last week. Meanwhile, Capesize ships reached 5,656 points, Panamax reached 2,282 points, and Supramax reached 1,762 points. This decline indicates a change in market conditions and demand.
On the coasts, physical activities remain high, with ships that were previously secured arriving and being delivered to the ports of Alang, Chattogram, and Gadani. However, no new sales have been reported in the subcontinental market. Pakistan is in the best position under these circumstances, while Bangladesh is seeking a return of demand but has not yet been able to achieve competitive numbers.
Impact of Oil Price Volatility on the Market
Crude oil prices have also decreased after recent increases. Brent crude is nearing $103 per barrel, and WTI is close to $101. This decline is due to increased Saudi loadings through Oman and expectations for a partial return of east-west pipeline operations. However, triple-digit oil prices and high insurance costs continue to create a costly business environment.
Currently, oil price volatility and currency exchange rate changes are also impacting the market. The Federal Reserve's interest rate has risen to 3.75% to 4.00%, which in turn has affected various economies. The exchange rate of the Indian Rupee against the dollar has reached 95.9, and the Pakistani Rupee has reached 277.25.
Ultimately, despite the decline in freight rates, shipowners continue their business activities, and the market is currently facing challenges. In the coming week, Pakistan will lead the subcontinental market, while Bangladesh and India will be looking for new opportunities.
Read more: Sufficient Crude Oil Supply for Japanese Refiners Until the End of November
