Tag Archives: Capesize rates

Waiting for 4th Quarter Results

29 Wednesday Oct 2014

Posted by in Dry bulk shipping

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Bulker_at_sunsetAll are waiting for 4th quarter final results to know whether to celebrate a recovery or hunker down for a depressed dry bulk market.

Political turmoil across the world combined with shaky economic realities has produced a less than stellar year for the dry bulk shipping industry. However, several factors, if fully realized in this last quarter of the year, could help to turn things around.

A number of negative factors weighed heavily on the dry bulk shipping market this year. The US experienced an unusually harsh winter while Europe enjoyed a mild one, resulting in significantly reduced east-bound shipments of coal. Indonesia’s new ban on unprocessed minerals was implemented in January, affecting shipping performance throughout the year. China saw one of its wettest summers on record, which allowed it to increase hydropower production but at the cost of coal imports. And, to compound the Chinese situation, new taxes designed to protect domestic coal miners went into effect this month, depressing coal imports. Continue reading →

Hope for capesize freight rates as steel demand in China continues to grow, keeping shipments of iron ore high as market and industry expecting rates to improve for 2nd half 2014

08 Thursday May 2014

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After April’s rather discouraging picture for Capesize rates, shippers are happy to see some significant improvement this month. The demand for steel in China continues to grow, resulting in improved margins for domestic steel mills and pushing up crude steel production to 832m tons, record levels. Iron ore stocks of 110m at ports were giving much cause for worry but now that iron ore inventories at the mills have hit record lows, fears have eased considerably. Imported iron ore prices have fallen by 8.4% and HRC prices have risen by 1.7% MoM. The picture for grain shipments from South America was fairly abysmal in the first quarter. Argentinian exports were down 35% from the same time last year, to less than 10mt, with cargoes remaining at ports. All of this pushed down Panamax rates, which remained weak at $7kpd. Nevertheless, market analysts expect grain shipments to increase, contributing to an optimistic outlook for second half 2104 within the industry. 
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Capesize iron ore freight rates falling due to decreased cargo

23 Thursday Jan 2014

Posted by in Dry bulk shipping

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Iron ore shipping vessels are feeling a pinch as cargo has diminished over the early winter season. Capesize iron ore freight rates in the Pacific and Atlantic have taken a corresponding tumble. Some iron ore shipping vessels are finding themselves without any cargo. It is reported that as many as 30 shipping vessels were in the Pacific seeking iron ore cargo.

The primary cause appears to be a slowdown in iron ore cargo coming out from Brazil and West Australia, which precipitated lower priced fixtures out of South Africa. Vale, a Brazilian miner, contributes their slowdown to weather, noting that the wet season significantly affected cargo activity. Continue reading →

Baltic Capesize Index (BCI) Showing Fine Supply/Demand Balance

20 Wednesday Nov 2013

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After a heated rise starting in mid-August through September which saw capesize rates more than double and almost triple, the month of October, and in particular the second half of October saw a step back as the market excitement cooled down and took a breather.

Only 95 ships acquired cargos during the four weeks ending on 28 October, compared to 162 during the previous 4-week period. Demand for steel remained depressed, pushing down the Chinese HRC prices to $570/ton, a drop from $600/ton at the beginning of September. Continue reading →

Capesize Rates Rise Strongly

27 Sunday Oct 2013

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Capesize rates have risen strongly since August this year. The Baltic Capesize index has been in the doldrums for most of the year – averaging only just over $6,000 per day for the first six months of this year. July and August’s Baltic Capesize Index averages were both over $13,000 per day. But the big rise came in September, when the Baltic Capesize Average Index averaged over $30,000 per day.

China’s strong steel production sector resulted in a record import of 74.5M tons of ore in September, 8% higher than in August, and a 15% increase over last year. Continue reading →