Capesize Rates Collapse Following Early Week Rally (30 Nov 2018)

CapesizeThey had a good run, but looking at the declines that have hit the Capesizes at the end of the week, it would seem like classic over-correction being swiftly neutralized following a false dawn of spot market recovery. No route is spared with Pacific round voy­ages—appropriately, considering their oversized im­provements—taking the worst of the decline, losing more than US$ 2,000 to settle in the high teens of US$ 17-18,000. Front haul trips, meanwhile, slip into the mid US$20,000s of about US$ 25,000 daily after fading from the high US$20,000s set at mid­week. Voyages have also come under heat as West Aussie rates to China slide to just above US$ 8/mt and Brazil/China voyages fall under US$ 17.5/mt.

If not quite at a boiling point, Panamaxes continue enjoying positive sentiment pushing rates higher yet with TARVs now likely to trade at US$ 14,000 daily (or just below) on early December dates, much improved from the US$ 13,000s of last week and weeks before. Pacific RVs are also holding to just over US$ 9,000 daily on standard 72-76,000 dwt tonnage with a notable upside still very much in place. Front hauls stabilized at around US$ 20,000 daily with slight improvements still more likely than slight discounts. Rumours abound with a market still in flux: period rates, while not taking the market by storm, are still fixed on a regular basis. There is one small Panamaxes (rumoured to be 62,000 dwt) fixed at US$ 19,500 for medium period ex-Veracruz on worldwide redelivery. Nickel ore runs on similar sizes (64-66,000 dwt) from South China have been secured at US$ 8,250 daily via Indonesia and back.

Period chartering seems to be returning to some degree to the Handy bulk sector with US$ 8-9,000 rates being done on Tess 52 tonnage from Southeast Asia on worldwide redel (3-5 months of trading). The big story in the Atlantic remains the USG with US$ 26,000 the newest high water market set for front hauls on Tess 58 ships. In the East, inter-Pacific trips are also fetching middle-high US$ 8,000s with such rates seen on 52-56,000 dwt ships from NoPac booked for trips south to Vietnam or Thailand.

To see more of BMTI’s daily dry bulk analysis, subscribe to the BMTI DAILY REPORT today.

Comments are closed.