CAPESIZE rates have improved lately, mainly caused by cargoes from Brazil, analysts Banchero Costa have reported.
According to BC, the standard route from West Australia to Qingdao (China) also moved from $7.80 per metric tonne to $8.20pmt for dates in early October while the time charter was traded in the region around low $20,000/day for normal capes open in China for Pacific return voyage.
Meanwhile, the important route from Saldanha Bay (South Africa) to Qingdao was reported to have followed a similar trend with rates rising to $14.40pmt for dates in mid-October.
Brokers Braemar ACM reported recently on “some trickles of activity” on the C5 (Australia – China) route recently with $7.80/tonne reportedly fixed basis for early October.
Allied Shipbroking reported the dry bulk market as showing a strong face amidst favourable tail winds, helped the Baltic Dry Index inch above the barrier of 1500 points.
“The last time the Index was above this level was on the 25th of March 2014, which is around 3 ½ years ago,” Allied reported.
“At the same time the market seems to be driven more so by the larger size segments (i.e. Capesize and Panamax vessels) this time around while in comparison to the earnings the rest of the sizes were seeing back then, they are currently trending at around 10% lower.”
Allied noted the market had been driven by the increased activity in iron ore and coal commodities.
“The drive of higher grade iron ore and coal pushed most Chinese steel mills to seek bigger volumes of imports from Australia and Brazil, helping not only ramp up total volumes of imports of these two vital commodities but also help pile on extra tonne-miles in demand thanks to the long distances,” Allied reported.