Capesize Rates Bounce Back

Tuesday, February 20, 2001
Freight rates for Capesize bulk carriers are bouncing back from a 15-week dive, as Japanese steel producers rush for ships to carry coal and iron ore cargoes bought at last year's prices. "Japanese buyers would have taken contracts for 2000 with options for additional cargoes of iron ore and coking coal," said one London broker. "Now it's the fiscal year end, and they appear to be declaring all those options." "The sudden rush for ships to carry those cargoes has put upwards pressure on freight rates," he added. He said producers of iron ore and buyers were miles apart in negotiations over 2001 contracts. London shipbroker SSY's Capesize Index showed a sudden reversal in the direction of rates, with the Atlantic Index gaining 75 points in the week ending Monday to reach 4,498. "The index shows something of a bounce this week, with the return of growth to freight rates occurring on almost exactly the same day as last year," said SSY. It observed the recurrence of this bounce every February for the last three years. Freight rates on the benchmark coal route of Richards Bay to Rotterdam rose to $8.55 per ton, compared with $8.37 last week, said London's Baltic Exchange. "Imminent commodity price rises are often the cause of market improvements... The rise has certainly not been spectacular, but it has arrested the slashing of rates," said SSY. David Price of McCloskey's Coal Report said demand for ships was likely to increase. "The Japanese fiscal year negotiations always lead to a hiatus, but an agreement is just about there and we should see a surge in March," he said. SS&Y tempered its assessment with warnings of future uncertainty. "We await to see the fortunes of the steel industry before judging the direction of freight rates over coming months," it said. - (Reuters)
Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

Mozambique Port Accident Deals Blow to Vale Coal Project

A coal stacker has collapsed at the Mozambique port of Nacala, dealing a blow to Brazilian miner Vale's effort to start coal shipments from the African nation in the third quarter,

Georgia Ports Score Record Cargo Numbers

The Georgia Ports Authority moved a record 3.66 million twenty-foot equivalent container units in Fiscal Year 2015, an increase of more than half a million TEUs.

Vale Coal Stacker Collapses at Mozambique Port

A coal stacker has collapsed at the Mozambique port of Nacala, dealing a blow to Brazilian miner Vale, which is aiming to start coal shipments in the third quarter of this year,

 
 
Maritime Security Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1055 sec (9 req/sec)