Capesize freights enter phase of reversal (25 Jan 2021)

With the week concluding on a pair of consecutive losses, it would appear that a freight reversal for the Capesizes was more than a flash in the pan. And with losses looking sharper than in the last round of corrections, it would also seem that owners have more to be worried about. Nonetheless, the fact that rates are still trading at relatively high levels bodes well for near term success of the biggest bulkers.

Atlantic grain flows are keeping Panamax owners in demand, if only just enough to keep rates moving steadily in the upward direction. But steady progress is arguably better than explosive gains in the bulker game, so owners are happy to see their sector getting consistent inquiry for once. South America remains the main driver with rounds from the Far East via ECSA and back fetching DOP rates within the US$ 14-15,000 daily range with the lower US$ 14,000s more likely on the standard 76,000 dwt ships and higher US$ 14,000s on the 82,000 dwt moderns.

No denying the surging Black Sea front hauls, which have leapt to US$ 23,000s from the US$ 20,000s in just a few days (all about getting those pre-tax grains done from Russia). Supramax owners say they are hearing more inquiry for ships from the UKC-Med to ECSA with 58-62,000 dwt fixing US$ 13,750.

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