Asia Dry Bulk-Capesize rates could nudge lower after cargo flurry

Thu Jul 30, 2015 3:07am EDT
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* Capesize market "overheated" as rates near eight-month highs

* Optimism for a busier fourth quarter - Singapore broker

By Keith Wallis

SINGAPORE, July 30 (Reuters) - Freight rates for capesize bulk carriers are likely to take a breather and drift lower after climbing to their highest level in nearly eight months this week following bad weather delays and charterers' need for urgent tonnage, ship brokers said.

"It's been really hot. Both the Atlantic and the Pacific have become overheated. That's why I think it will be bit of a quiet week," said a Shanghai-based capesize broker.

"Owners are pushing for more than $16 per tonne from Brazil to China, while charterers are offering $14 per tonne. There is a nice $2 spread which means nothing will be done while both sides reassess the market," said a Singapore-based capesize broker.

"I think it will be soften a bit," the Singapore broker said.

Freight rates from Brazil to China rose more than $1 per tonne in the week as charterers fixed vessels for early and mid-August loading, Reuters data showed.

This need for prompt tonnage had been caused by bad weather delays, the Shanghai broker said.   Continued...