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Panamax Market News

15 Sep 2023

Baltic Dry Index Logs Best Week in Over Six Months

© Lukasz Z / Adobe Stock

The Baltic Exchange's main dry bulk sea freight index rose on Friday, clocking its biggest weekly percentage gain since March as demand across all vessel segments remained strong.The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose for the eighth straight session by 41 points, or 3.1%, to 1,381.The main index posted a 16.4% gain for the week.The capesize index, added 90 points, or about 6%, to 1,602, hitting its highest level in a month.

11 Jun 2020

Bulk Carriers Orders Down 30%

© yaniv/AdobeStock

The number of Bulker orders were down 30% for 2020 YTD compared to the same period last year. From the 1st of January 2020 when the Chinese market and shipyards closed due to the pandemic, until today, we have only seen USD 1,037 mil spend in the Bulker NB market, down 35% for the same period in 2019. The Chinese government have now started up the economy again and most of the orders placed are by companies like China Development bank and Bank of Communications all being built…

31 Mar 2017

Asia Dry Bulk-Capesize Rates Set to Climb Again

Capesize rates hit new multi-month highs this week; BHP and FMG likely to renew chartering activity next week. Freight rates for large capesize dry cargo vessels on key Asian routes, which hit multi-month highs on Tuesday, could climb further on increased chartered activity by miners and operators, brokers said. "Only Rio Tinto has been active this week - it picked off the injured animals - fixing ships for less than the last fixture, dampening the market by 50 cents a tonne," a Singapore capesize dry cargo broker said on Friday. "There's been no competition - no BHP Billiton, no Fortescue Metals Group and no operators," the broker added.

22 Dec 2016

Asia Dry Bulk-Capesize Rates to Firm on Tight Tonnage, Ample Cargo

Just handful of ships for Brazil loading in early January; coal, South African iron ore cargoes support rates. Freight rates for large capesize dry cargo ships on key Asian routes could diverge with rates from Brazil to China nudging higher on a shortage of tonnage and those from Australia to China holding firm around current levels on ample cargo, ship brokers said. "Tonnage is very tight given the number of ships available for January loading dates from Brazil. Rates should keep pushing higher," a Singapore-based capesize broker said on Thursday. "There are only a couple of ships available to load for the first half of January," the broker added. "Vale is offering rates around the index level, but ship-owners are making offers about $1 per tonne above that," the broker added.

21 Nov 2016

‘Frothy’ Capesize Sector Threatens New Year Hangover for Dry Bulk

Photo: BSM

Maritime Strategies International (MSI) is forecasting a firm festive season for the dry bulk market, swiftly followed by a New Year comedown. In its latest Dry Bulk Freight Forecaster* MSI notes that after a steady fall in average daily TCE spot earnings in October, November saw an inflection point for Capesizes, with rates soaring to over $16,000/day, the highest since mid-2015. Some of this strength has translated to the Panamax market, although Supramax and Handysize earnings have been broadly unaffected.

20 Oct 2016

Excess Tonnage Weighs on Asia Dry Bulk-Capesize Rates

Capesize market "absolutely dead" on Thursday - broker. Vale says no new cargoes but owners sail empty vessels to Brazil. Freight rates for large capesize dry cargo ships on key Asian routes will continue to fall next week as too many ships chase available cargoes, brokers said on Thursday. "The market is absolutely dead today - it's all very doom and gloom," said a Singapore-based capesize broker on Thursday. While BHP Billiton and Rio Tinto have been active charterers this week, Fortescue Metals Group has stayed out of the market, the broker added. "Vale has said it had nothing now for October- and November-loading dates, so there will be no volume from Brazil," the broker added.

13 Oct 2016

Asia Dry Bulk-Capesize Rates could slide as Tonnage Outweighs Demand

Many vessels available for charter put pressure on freight rates. Freight rates for large capesize dry cargo ships on key Asian routes are set to slide next week as the number of ships available for charter outpaced cargo demand, ship brokers said on Thursday. "Charterers are in the market but there aren't that many cargoes to support the volume of ships. There is a softer feel to the market," a Shanghai-based capesize broker said. Owners were left puzzled after South Korean operator Polaris Shipping offered $11.95 per tonne to charterers for a voyage from Brazil to China on Thursday. That was a discount of 45 cents per tonne, equivalent to a loss of $76,500 on a typical 170,000 tonne iron ore capesize cargo, to the prevailing Baltic index rates, brokers said.

06 Oct 2016

Asia Dry Bulk-Capesize Rates to Remain Steady

Owners seeking to push rates higher, close to year-long highs; dry bulk sector to see greater consolidation - BIMCO. Freight rates for large capesize dry cargo ships on key Asian routes are likely to remain steady next week even as owners try to push rates up close to year-highs, ship brokers said. That came as charter rates stayed firm despite China's week-long National Day holiday which ends at the weekend. "Owners were asking around $6.10 per tonne from Western Australia to China on Thursday and $13 per tonne from Brazil to China," a Singapore-based capesize broker said on Thursday. Freight rates are climbing towards the year-highs touched on Sept. 22. "The market has been rising on the back of operators chartering vessels to move iron ore, but all the miners are in the market today.

18 Aug 2016

Q4 Bounce Forecast for Dry Bulk Market

File photo: Eagle Bulk Shipping

The Q4 bounce – a seasonal staple of the dry bulk markets – looks likely for Capesize and Panamax segments, but the effects may be limited. Independent research and consultancy firm Maritime Strategies International (MSI) is forecasting a fourth quarter bounce in dry bulk market earnings, driven by improving iron ore, coal and grain trades. In its latest Dry Bulk Freight Forecaster, MSI sees positive signs beyond the traditional summer lull in chartering activity for both the Capesize and Panamax sectors.

30 Jun 2016

Demand, Bunker Pricing Spurs Asia Dry Bulk-Capesize Rates

Owners asking $1 per tonne more on Australia-China rates; Panamax rates climb to two-month high, but remain under pressure. Freight rates for large capesize dry cargo ships on key Asian routes could continue to firm next week on higher cargo volumes and bunker prices, while upbeat shipowner sentiment will also support the market, ship brokers said. "The market is pushing up a little bit. Owners' ideas though are even higher - they are indicating about $1 per tonne more on rates from eastern Australia," a Shanghai-based capesize ship broker said on Thursday. "Sentiment is more positive now than at the beginning of the week," the broker said.

21 Apr 2016

Asia Dry Bulk-Capesize Market Direction Uncertain

Owners resisting charterers' attempts to push market lower; rates slip from 5-1/2-month highs. Freight rates for large capesize dry cargo ships on key Asian routes face an uncertain outlook next week with some owners resisting charterers' attempts to push hire rates down even as freight rates nudge lower, ship brokers said. That came after a rally this week that saw freight rates hit the highest level since early December fuelled by a flurry of chartering activity by miners including Rio Tinto and Fortescue Metals. Rates for the Brazil-China route rose to $8.95 per tonne on Wednesday, up from $7.49 per tonne on the same day last week, chartering data on the Reuters Eikon terminal showed. Rates hit $9.28 per tonne on April 18, the highest since Dec.

28 Jan 2016

Asia Dry Bulk-Capesize Rates Likely to Remain Flat

Freight rates for capesize bulk carriers on key Asian routes are likely to stay flat as vessel volumes outpace cargo demand and the approaching Chinese New Year holiday further dampens chartering activity, ship brokers said on Thursday. There is little hope of any improvement in rates, which remain at near 16-1/2-year lows, even after the Chinese New Year holiday which starts on Feb. 7, brokers said. Forward freight rates for March on the Australia-China capesize route are at levels of $3 a tonne currently, a Shanghai-based capesize broker said. "People don't give much hope there at all. The market is flat and gloomy," the broker said.

16 Dec 2015

Capesize Values Drag but Earnings Set to Rebound

Dry bulk asset values dropped sharply in November and have reached 16-year lows, partly driven by very weak sentiment over the near-term future for vessel earnings, according to the latest Dry Bulk Freight Forecaster from shipping research and consultancy firm Maritime Strategies International (MSI). However, despite a bearish forward view of dry bulk fundamentals, MSI is more positive than the freight futures market’s forward curve for Capesize and Supramax spot rates in Q2 next year. MSI predicts a closing of the gap between iron ore spot and futures prices over the next six months, driving a period of iron ore restocking in China during Q2 which will support the Capesize market…

19 Nov 2015

Asia Dry Bulk-Capesize Rates Could Slip Again

Capesize market could worsen in short-term; 3.5 mln tonnes could be cut from Brazil ore exports. Freight rates for capesize bulk carriers could drift lower next week as Brazil's Samarco iron ore mine disaster and uncertain ore demand from China weigh on cargo volumes, brokers said. That comes as capesize charter rates from Brazil to China on Wednesday hit their lowest level since December 2008. "I'm afraid things could get even worse in the short term," said Ralph Leszczynski, head of research in Singapore at ship broking house Banchero Costa (Bancosta). "Sentiment about Chinese demand, by far the largest importer of iron ore, is just terrible at the moment," he said. The disaster at the Samarco iron ore mine on Nov.

05 Nov 2015

Asia Dry Bulk-Capesize Rates to Slide with Voume Drop

Freight rates for capesize bulk carriers could hold around current levels or nudge slightly lower next week as cargo volumes fail to match the number of ships available for charter, brokers said on Thursday. That came as the traditional fourth quarter bounce in rates from strong year-end cargo demand remained elusive, brokers added. "No one expected the fourth quarter to be so bad," said a Shanghai-based capesize broker. "Last week people were saying we were at the bottom of the market already. My feeling is we are near the line but not yet," the broker said. Market players were slowly losing hope of witnessing any big spike in rates this year, Norwegian shipbroker Fearnley said in a note on Wednesday.

30 Jul 2015

Dry Bulk Shipping Outlook Improving

The dry bulk market looks set for a solid show, although conditions remain more than challenging, analysts with Macquarie said in a note, reports WSJ. As the amount of iron ore and other goods carried by these ships races ahead of new capacity, the outlook for “dry bulk” carriers is improving. Macquarie said that dry bulk rates are off their lows, in large part because shipping lines have introduced few new vessels into the market. In the first half of the year, capacity grew by less than 1% . That’s despite a pickup in iron-ore exports by major producers in Australia and Brazil, which has increased demand for dry bulk ships. The rebound in dry bulk has parallels in the market for oil tankers…

21 May 2015

Asia Dry Bulk-Capesize Rates Mixed on Uncertainty

Capesize rates slide after hitting 5-month high. Rates for capesize bulk carriers eased this week after hitting their highest since December, and could come under pressure next week if charterers hold back cargoes, ship brokers said. "So far, I can't see too much cargo in the market. Charterers are hoping rates are going to drop again," said a Shanghai-based ship broker on Thursday. "Sentiment is not good," the broker added. But the broker said average earnings were higher than the first quarter of the year. Average earnings for a capesize vessel, which can carry around 170,000 tonnes of iron ore or coal, were almost $8,300 per day on May 15, compared with about $5,900 in the first quarter, according to figures from British shipping services firm Clarkson.

14 May 2015

Asia Dry Bulk-Capesize Rates Steady

Rates for capesize bulk carriers, which climbed to their highest since at least January on Wednesday, are likely to remain steady next week on tighter tonnage supply, ship brokers said. That comes as charterers could hold back cargoes to cool this week's rise in freight rates, a Singapore-based capesize broker said on Thursday. "The capesize market is quite tight for June-loading dates. "Capesize rates from Brazil and South Africa and for transatlantic voyages are still pushing up. There's been quite a lot of activity this week," the broker said. There have been more than 40 capesize fixtures since May 7, according to Reuters chartering data with multiple charters arranged by miners, including Vale and BHP Billiton, and operators such as Germany's Oldendorff Carriers.

29 Apr 2015

SFL Acquires Eight Capesize Bulkers

Ship Finance International Limited today announced the agreement to acquire eight Capesize dry-bulk carriers from subsidiaries of Golden Ocean Group Limited ("Golden Ocean"). The vessels are named Golden Beijing, Golden Zhoushan, Golden Magnum, Battersea, Belgravia, Golden Zheijang, Golden Future and KSL China and were built in Korea and China between 2009 and 2013. The total acquisition price will be $272 million, or $34 million on average per vessel. The vessels are expected to be delivered to Ship Finance within July 2015, subject to customary closing conditions. The vessels will be chartered on a time-charter basis to a subsidiary of Golden Ocean for a period of 10 years. The daily base charter rate will be $17,600 during the first seven years, and $14,900 thereafter.

08 Jan 2015

Asia Bulk-Capesize Rates at 6-year Low

Charter rates at 6-year lows as cargoes scarce; some owners anchoring ships rather than leasing at a loss. Rates for capesize bulk carriers have plunged to fresh six-year lows and could fall further with cargoes scarce in the post-holiday period, brokers said. "There are still a lot of ships that are anchored off South Africa, Singapore and Taiwan with not a lot of cargo volume to soak them up," a Singapore capesize broker said on Thursday. Some European owners are choosing to anchor vessels rather than lease their ships at a loss, the broker said. Charter rates for a voyage from Australia to China are around $3,000 per day, less than half daily operating costs, according to data from British shipping services firm Clarkson.

11 Dec 2014

Asia Dry Bulk-Capesize Market 'Imploding'

Capesize rates fall to six-year lows; rates below ship operating costs, according to accountancy firm. Rates for capesize bulk carriers on key Asian routes, which crashed close to six-year lows on Wednesday, will continue their inexorable fall in the face of few fresh cargoes, brokers said. "The market is not very pretty. I've never seen it this low in my time. There is absolutely nothing happening," one Singapore-based capesize broker said on Thursday. "Capesizes are a disaster," a Hong Kong owner of dry bulk ships including capesize vessels told Reuters on Thursday. Capesize spot rates from Australia to China are down to the equivalent to $5,500 per day, below the daily cost of operating a 180,000 dwt (deadweight tonne) capesize ship, the Singapore ship broker said.

16 Oct 2014

Asia Dry Bulk-Capesize Fall on Cargo Woes

Rates for capesize bulk carriers on key Asian routes are again likely to fall as the volume of tonnage limits any price gains from an increase in chartering activity, brokers said. Freight rates for a voyage from Australia to China have steadily fallen since Sept. 30 and are the lowest since May 22. Rates from Brazil to China have fallen for the last six weeks and are now the weakest since January 2013. "We don't know how low rates can go. The capesize market is just in a rut," said a Singapore-based capesize ship broker on Thursday. Moves by ship owners to resist charterers' attempts to push rates lower have failed because there is too much tonnage available, the broker said.

09 Oct 2014

Dry Bulk Drought: Asia Rates Fall

(Photo - Vale do Rio Doce)

Rates for capesize bulk carriers on key Asian routes could continue to fall next week in the absence of major charterers although lower freight rates could tempt top iron ore miners back into the market and potentially buoy rates, brokers said. Charterers, including Vale, BHP Billiton and Fortescue Metals, kept out of the market on Thursday, shipbrokers said. "Without the likes of Vale and Rio Tinto in the market, rates are not going to rise. There are still plenty of ships available for October loading," said a Singapore-based capesize broker.

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