Asia Dry Bulk-Capesize Rates Likely to Remain Flat

Posted by Joseph Keefe
Thursday, January 28, 2016
File Image: a so-called ValeMax Bulk Carrier

Chinese iron ore and coal imports to fall in 2016 - Clarkson

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.

Shipowners have idled up to 50 capesize ships in Asian waters rather than sail ships at a loss as average daily freight rates are at levels that are about half that of daily operating costs.

"I think you'll see operators are going to struggle. The market is at rock bottom," a Singapore-based capesize broker said.

That came as ship broker Banchero Costa (Bancosta) said the capesize fleet would grow by 4 percent in tonnage terms this year, while Chinese imports of iron ore and coal, the two staple cargoes for capesize ships, are forecast to fall, Clarkson said.

China's iron ore imports will drop to 919.2 million tonnes in 2016 from 924 million tonnes last year, while coal imports will fall 8 percent to 156.1 million tonnes this year, Clarkson said.

A new record level of capesize scrapping is expected this year, after a record 14-15 million deadweight of capesize tonnage was sold for demolition last year, said Ralph Leszczynski, head of research at Bancosta in Singapore.

"The lack of long-term optimism will probably prompt even less older tonnage to be considered for scrapping," said a senior executive at a Singapore ship management company.

Capesize charter rates for the Western Australia-China route nudged up to $3 per tonne on Wednesday, from $2.90 a tonne a week ago.

Rates for the Brazil-China route were higher at $5.46 a tonne on Wednesday, against $5.35 a tonne on the same day last week.

Panamax rates for a north Pacific round-trip voyage dropped to $2,118 per day on Wednesday, the lowest since January 2009, from $2,587 per day on the same day last week.

"(There is) no where to hide in the Panamax market," Norwegian ship broker Fearnley said in a note on Wednesday.

Freight rates for smaller supramax vessels dropped to around $2,500 per day for a voyage from Indonesia to India.

The Baltic Exchange's main sea freight index dropped to a new all-time low of 337 on Wednesday from 358 the same day last week.


Reporting by Keith Wallis

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

HCI Capital Renamed Ernst Russ AG

A vote was passed at the ordinary shareholders’ meeting of HCI Capital AG yesterday to change the company’s name to Ernst Russ AG. The Executive Board and Supervisory

CMA CGM to use Kingston As Transshipment Hub

French shipping giant CMA CGM plans to use Kingston Container Terminal,  Jamaica as a strategic Caribbean transshipment hub for an enlarged Panama Canal. The Port connects to US East Coast,

Conrad Shipyard Forms LNG Business Unit

Conrad Shipyard has formed a new business unit focused on LNG projects.   Conrad, builder of North America’s first LNG bunker barge scheduled for 2017 delivery,

Contracts

ABP orders Two Gottwald cranes

Terex Port Solutions (TPS) has received an order from Associated British Ports (ABP) for two electric Terex Gottwald Model 8 portal harbour cranes in the G HSK 8424 B four-rope grab variant.

POSH Bags Shell FLNG Contract

Singapore’s offshore marine services provider PACC Offshore Services Holdings Ltd. (POSH) has been awarded a contract to support Shell’s Prelude floating liquefied

Baltic Index up for Third Straight Session

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday, for a third straight session, on rising demand across all vessel segments.

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

News

HCI Capital Renamed Ernst Russ AG

A vote was passed at the ordinary shareholders’ meeting of HCI Capital AG yesterday to change the company’s name to Ernst Russ AG. The Executive Board and Supervisory

ABP orders Two Gottwald cranes

Terex Port Solutions (TPS) has received an order from Associated British Ports (ABP) for two electric Terex Gottwald Model 8 portal harbour cranes in the G HSK 8424 B four-rope grab variant.

Traffic Separation Schemes off Western Australia

On 1 December 2016 two new Traffic Separation Schemes (TSS) will come into effect off the south-west coast of Western Australia. Australia’s proposal to establish

Logistics

Maersk Takes Coffee Very Seriously

Maersk acknowledges that coffee is very special, mainly in regards to the processes and requirements involved for it’s shipping. "So we have adapted the way we work so we can meet your needs,

World Trade Routes Won't be the Same with Expanded Panama Canal!

On 26th June 2016, a landmark development for the shipping industry will occur with the opening of the new third set of locks at the Panama Canal. Clarksons Research takes a look.

CMA CGM to use Kingston As Transshipment Hub

French shipping giant CMA CGM plans to use Kingston Container Terminal,  Jamaica as a strategic Caribbean transshipment hub for an enlarged Panama Canal. The Port connects to US East Coast,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.1279 sec (8 req/sec)