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 October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

Third Strike, Mansour Is Out

The M/V "MANSOUR M" with IMO number 7600586 has been banned for the 3rd time after subsequent detentions after the second refusal of access order in the Paris MoU region.

MacGregor Deck Equipment for Intership's Eco-bulkers

MacGregor, part of Cargotec, has secured a deck equipment contract from New Times Shipyard in China for Intership Navigation Co Ltd.'s three new 36,500 dwt laker-class bulk carriers.

Fednav Celebrates Anniversary Trio in Cleveland

Fednav Limited held a reception on board one of its vessels, the Federal Mayumi, at the Port of Cleveland yesterday to celebrate a trio of anniversaries: the 70th

 
 
Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.4859 sec (2 req/sec)