Capesize freight rates inched down in the run up to the weekend, amid thin liquidity on both physical and paper markets. “Seems the market is adjusting a bit,” said a Greek shipbroker. Market players held mixed views and preferred to wait till next week.
“It should be known to the market that there has been a rise in the usage of Capesize ships for cargoes that would have been loaded by either Panamaxes or Handysize ships, thanks to the strong rates observed for those smaller sizes compared with the Capesize,” a shipbroker said, adding that there could be a further push on Capesize freight rates due to the increasing competition from charterers.
Meanwhile, some market participants held the view that tonnage supply in both basins has overwhelmed shipping demand, especially from Brazil amid the rainy season.
Pacific market
Trading activities slowed down before the weekend and freight rates saw small losses amid a healthy cargo list. Discussions of coal cargoes from east Australia and Indonesia look sustainable, while the appetite from western Australian mining majors was strong, sources said. Among fixtures, miner FMG and Rio Tinto were heard having taken a ship separately for a west Australia-to-Qingdao voyage at $9.25/wmt and $9.10/wmt, respectively. The indicative freight heard on the west coast Australia-to-Qingdao route was in the range of $9.10/wmt to $9.25/wmt. The freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore on the Port Hedland-Qingdao route was assessed at $9.25/wmt, down 15 cents/wmt from March 11.
Atlantic market
In recent times, the wide freight rate spread between the Capesize and the smaller Panamax and Supramax bulk carriers has resulted in charterers trying to hire the larger ship to save on freight costs. However, the support seemed to be limited for Capesize freight rates. Out of Brazil, freight rates dropped as both offers and bids moved down, though trading activities were still scant. For the end-March loading window, freight rates were depressed by the ballaster list and there were talks that a Capesize ship, the 2013-built and 181,415 dwt MV Cape Pelican, was being chartered to load logs from Uruguay’s Montevideo port to North China.
For early April laycan, CSN was heard fixing a Newcastlemax ship late March 11 to move iron ore from Itaguai to China, with freight talks in the range of mid-$17s/wmt to $18/wmt. Vale was heard with a bid of $17/mt, basis PDM loading.
The indicative freight levels heard on the Brazil-to-China route were in the low-mid-$17s/wmt. The freight rate for a Capesize ship to move 170,000 mt (plus/ minus 10%) of iron ore from Tubarao to Qingdao was assessed at $18.75/wmt, down 75 cents/wmt day on day.
Out of South Africa, Anglo American and Assmang Ore & Metal were seeking ships for moving iron ore for early-April laycans.
Indicative freight levels heard on the Brazil-to-China route were in the mid-$14s/ wmt.
The freight rate for a Capesize ship to move 170,000 mt (plus/minus10%) of iron ore from Saldanha Bay to Qingdao was assessed at $14.65/wmt, down 10 cents/wmt from March 11.
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