Shipbrokers Simpson, Spence and Young's
Atlantic Capesize Index rose 532 points in the week ending Monday to 4,400. SS&Y officials reported that the index is now nearly 1,500 points higher than it was in the same period in 1998. It is also just 19 points off pre-Asian crisis levels in October 1997. The surge in rates was due mainly to the grounding of the 274,326 dwt ore carrier Weser Ore at Tubarao, Brazil, on Oct. 4, which led to spot replacement tonnage seeing knee-jerk rate rises, SS&Y officials reported.
Conditions this week were seen by SS&Y as likely to remain firm but that it was only sustainable if Japanese steel industry demand remains strong.