UPCOMING Moon Festival holidays in China have been blamed for a quiet week in the capsize sector.
That was the view of Allied Shipbroking in a recent market update.
“The upcoming Moon Festival holidays in China seems to have already taken effect on the charter market, with rates across the board dropping as activity started to slow and the overall excitement witnessed a few weeks back has now faded,” Allied reported.
“There is still optimism that once the Chinese get back to action towards the end of the week we may well start to see things heat up once more and rates may well start to show strength.”
Fellow shipbroker Braemar said there appeared to be “more resistance from owners” who were biding their time with current levels considered unsustainable.
Braemar reported the Brazil-China market appeared to be pausing for breath with little recent activity.
“The absence of a bid for October halted any significant trade,” Braemar said in a report.
“There still seems to be some demand remaining for the second half of October, toward the end of the month but (there is) no real impetus from charterers to chase currently.”
Meanwhile the Sydney Market Index showed iron ore as trading for US$62.86 a tonne at the close of business on Tuesday October 3, prices having dropped from US$76.54 at the start of the month.