Asia Dry Bulk-Capesize rates to hold steady; Atlantic demand to give market direction
* Brazil-China capesize rates hit seven-month high
* Pacific capesize market dragged by buoyant tonnage supply
By Keith Wallis
SINGAPORE, July 23 (Reuters) - Freight rates for capesize bulk carriers are likely to hold steady next week although a rush of cargo in the Atlantic would again provide the trigger for rates to move higher, ship brokers said.
That came after a surge in Atlantic and transatlantic cargoes boosted capesize freight rates from Brazil to China by almost $2 a tonne to a seven-month high this week.
The increase was equivalent to a rise in time charter earnings of about $4,500 per day, according to British shipping services firm Clarkson.
"All eyes (are on the Atlantic)," said a Singapore-based capesize broker. There is room for optimism with healthy cargo volumes anticipated in the Atlantic and transatlantic, the broker said.
Fixtures by Oldendorff, Cargill and Vale helped push rates higher in the Atlantic this week, Reuters chartering data showed.
But a Shanghai-based capesize broker was more pessimistic about the outlook next week with the last Brazil-China charter concluded at $14.50 a tonne. Continued...