Skip to main content

Capesize rates rebound at last

Global – While conditions have not been good in the dry bulk market since the second half of 2013, capsize rates ended week 33 of this year at US$ 15 561 per day to record a week-on-week increase of 66%, says Commodore Research & Consultancy.

Capesize rates have risen because vessel availability in both the Atlantic and Pacific basins has become ′tighter′, Commodore states. ′Going forward, demand for capesize vessels is poised to rise even further as both Australian and Brazilian iron ore production is set to rise much further through the end of the year.′

In total, 10 dry bulk vessels (including nine capesizes) were chartered in the spot market last week to haul Brazilian iron ore. ′This was four more than were chartered during the previous week and the most chartered in any single week since the first week of July,′ the analyst notes. Availability in the Atlantic basin has already been tight and the increase in demand for vessels to ship Brazilian iron ore is leading to increased capesize rates.

Much more Brazilian iron ore will be exported during September through the end of the year, and capesize rates are set to climb further as a result. In particular, Vale’s iron ore shipments during the second half of this year are expected to total at least 176 million tonnes – a ′huge′ increase of 31.6 million tons or 22% from the first half of this year.

In China, there continues to be substantial demand for imported iron ore, with incoming volumes surging again last month to a robust 82.5 million tons – the third-largest amount bought from overseas. Steel mills have benefited greatly from the decline in iron ore import prices seen so far this year.

′Chinese steel mills continue to consume a much greater amount of imported iron ore over domestic iron ore this year,′ Commodore asserts. These developments are taking place against the backdrop of a capesize fleet that is now growing by only a relatively small amount.

For more information, visit:

Source: Hellenic Shipping News Worldwide

Don't hesitate to contact us to share your input and ideas. Subscribe to the magazine or (free) newsletter.

You might find this interesting too

E-scrap players will see new highs
Rio Tinto scrapping aluminium refinery in Australia
Amazon invests in 100% recyclable packaging

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe now and get a full year for just €169 (normal rate is €225) Subscribe