Rates trended downward across dry bulk shipping over the past seven days as chartering activity remained subdued amid Covid-19 uncertainty.

The Baltic Dry Index slipped 95 points to 1,267 points, while the time charter equivalent average for capesizes declined by $1,004 to $15,248 per day, Baltic Exchange assessments show.

"It was a tough week for Capesize owners as the market was seen to ebb away on underwhelming activity levels," the exchange said on Friday in its weekly market wrap-up.

"It's uncharacteristic for this time of the year, although 2020 is anything but normal."

Still, 14 charters were signed on Friday for asset classes ranging from panamax to capesize, including a to-be-nominated 170,000-dwt, 2010-built capesize to German power company RWE later this month at $6.90 per tonne.

The benchmark Brazil-China fronthaul route slid to $15.605 per tonne from $16.51 per tonne, while its round-trip counterpart dropped to $15,227 per day from $16,354 per day.

"Lingering oversupply on the primary routes and lower Australian iron ore shipments have kept earnings in a downward trajectory over the last week," Clarksons Platou Securities wrote in a client note.

Futures market shows optimism

But the freight forward agreement market is showing some promise, with October contracts trending up $600 to $18,600 per day.

"Brokers said there is cause to be optimistic for the coming days," Clarksons added.

Positives include congestion at Australian ports amid high commodity prices, China delaying import licences for Australian coal and iron ore, and port upkeep in Australia wrapping up.

"Finally, the panamax fleet continues to be employed by a better than average grain season, thus reducing the likelihood of capesize cargoes being split into two panamax cargoes," Clarksons said.

Panamax TCE rates shed $1,223 per day over the week to $11,817 per day on Friday.

"With confined demand globally, it proved to be a challenging week for owners with a slow and steady erosion of rates in the Panamax market," the exchange said.

"With very little action of note in the Atlantic, rates here came under the most pressure with charterers largely able to pick off tonnage at will."

Scarce fixture activity also kept supramax rates down.

"Brokers described a positional week from the Atlantic with many areas losing ground with little fresh enquiry," the exchange said.

Handysize rates dipped as well for the same reason, falling to $12,093 per day from $12,907 per day on Friday.

The US Gulf and east coast South America were not particularly active or firm throughout the week. Meanwhile, brokers suggested a ray of hope for vessels opening in the Pacific, with sentiment firming slightly.