Asia Dry Bulk-Capesize rates to climb on bad weather delays, more cargo

Thu Jul 7, 2016 4:39am EDT
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* Brazil-China rates hit seven-month high on thin tonnage numbers

* Typhoon Nepartak likely to cause delays, disrupt sailing schedule - brokers

By Keith Wallis

SINGAPORE, July 7 (Reuters) - Freight rates for large capesize dry cargo ships on key Asian routes could move higher next week on a potential ship shortage, higher cargo volumes and storms in China that could disrupt sailing schedules leading charterers to scramble to fix replacement tonnage, ship brokers said.

"We do not have a lot of ships available off Brazil to load cargo at the end of July. That will likely support freight rates," said a Shanghai-based capesize broker.

That came as capesize rates from Brazil to China hit a seven-month high on July 4.

"Hopefully, rates will climb up to near $10 a tonne," the broker added.

The Big Three Australian miners - Rio Tinto, BHP Billiton and Fortescue Metals Group - have largely been absent from the spot-chartering market this week after freight rates climbed to a three-week high on Monday, although they have subsequently slipped.

"When the market is hot, miners are always inclined to wait for rates to fall," the broker said.   Continued...