Oil and the US Dollar met with considerable pressure. While the US dollar lost for the most part of the October, Oil steadied to around USD 81 per barrel. Some considering the price still a manageable yield.

The IMF meet underscored the importance of cohesive action by group nations to sustain the level of growth, economies since still recovering. US markets  performance were still below expectations, though not alarmingly bad. The valuation crisis of the Chinese Yuan, made rounds among the member nations at the meet, as one to be seen with caution. Meanwhile reports indicated a further growth in Chinese sector, adding to the mounting trade surplus. Some independent reports however indicated trends of the rising Yuan, with chinese officials commenting it a natural phenomenon. A position they were maintaining all along that the goverment has not influenced in its low value parity at any point of time.

The group of 20 major economies in its meet agreed to shun competitive currency devaluation, that was a major concern since a couple of months. The meet however ended without any specific agreements or targets on issues as  devaluation and measures to reduce trade imbalances among the member countries.

Gulf states and oil-exporting countries in the MENA ( Middle East North Africa ) region is witnessing a rapid increase in their current account surplus, largely driven by the increase in oil prices. The increase, according to the IMF is put around 23 percent. Thus the combined the surplus reported at around USD 150 Billion, of which GCC accounts for about USD 50 Billion. The increase in prices in 2011, however will be at around 3 per cent and the demand for oil at a realistic level, since global economic growth will be very modest.

The USD 80 Billion retail market of Saudi Arabia continues to get attention for its consistent growth potential. The oil rich, largest economy of the GCC was holding steady, despite,  the severe crisis that affected many economies in the bloc.

In the UAE, October was a month of rapid gains. All situations indicating a come back to buoyancy, though at a steady pace than on speculative grounds. Major exhibitions added to the developing trend.  Rapid re-structuring of the  mega corporations that had faced trouble has paid off well. Local newspapers reported on the medium sized residential projects of local developor Nakheel. The projects are to take off as of end October, 2010, the papers reported. The groups further restructuring will be completed by the end of the year. 

Resurging piracy incidents has started making headlines. The news reports states that with the ebbing monsson along the Somalian coast, the pirates are back to business.  The estimated number of ships under seize have been reported at around eighteen, with the crew totalling around 400.  It seems the menace is getting an organised structure, with seasons and situations getting steady definition.

The corresponding risk to carriers are compelling them to have ships and cargo insured for additional coverage. Apart from this, some carriers are taking sharp deviations away from the potential risk routes. This move is causing more exposure to the fuel consumption, adding to costs. A cost that is now being passed on the trade. The growing Indian Ocean islands trade is bearing the brunt of rapid rates increases.

The  Far East rates have steadied after a rapid fall, that many feared to bottom badly. The winter movements demand is keeping the rates steady. The general rate increase anticipated have not been implemented.

Container sector so far have not reported major tonnage surpluses, whereas a looming issue is not far away, as reports indicate that world trade growth cannot see a great acceleration during 2011. A situation closely watched by carrier interests. 

On the wet trades, supertanker owners are reporting an uncomfortable period for their sector. With new tonnage flooding the market in rapid succession, surpassing demand for oil in the ensuing period. The returns on fixtures are reported to be negligibly lower. The trade is now resorting to low speed deliveries to cut costs. Apart from this, anchoring more ships in the face of uncertainity, indicating a period of two to three years of pressure. Industry experts reports some 85 Million deadweight tonnes to be added to the sector in the next two years. That is quite an increase to a sector already saddled with surplus tonnage.

Interestingly the dry bulk market is continuing with strong demand. The demand for Coal and Iron Ore , particularly for China, where steel stocks are reportedly decreasing, the demand for the tonnage is expected to remain steady in the short term. Thus coal and grain will keep this segment comfortably afloat without much turbulence.