Supramax spot rates could erase their gains as they near $40,000 per day on average because more tonnage may become available. Demand for these smaller-sized bulkers has been driven by elevated congestion, increased demand for coal amid a power shortage, and the containerization effect.

Rates could soften in the coming weeks as more vessels open, a Hong Kong-based operator said, adding that coal from Indonesia to China or India was the only trading lane seeing increases in freight.

Braemar ACM noted that about 30 vessels would become available in southeast Asia over the next fortnight, with several owners offering period charters around the $37,000 per day mark.  A lack of iron ore cargoes into India was also making a dent on earnings, it said, with the only bright spot being continued strong grain shipments out of Australia.

The average weighted time charter dipped 1.1% to $39,421 per day at the close on the Baltic Exchange on October 22 from a decade-high of $39,860 in the previous session.

Maritime Strategies International noted how strong nickel ore trade from the Philippines to China was reaching a seasonal peak and was expected to decline in the coming months.  It also expects slowing demand for raw materials from China to add downwards pressure on earnings, which could fall 25% into the first quarter of next year.

However, if congestion fails to unwind, there could still be some upside potential.

Supramax rates have been outperforming other segments, except capesizes, although the gap between the larger panamax bulkers was narrowing given that this size category continued to rise, closing out the week at $38,945 per day.