Capesize Broker News

Rates from Brazil to China fall by $4/tonne, $6,000/day; queues at Dalrymple Bay to ease, return to normal in January. Freight rates for large dry cargo ships on key Asian routes could slide further from multi-week lows as chartering activity thins during the holiday season and abundant tonnage for January weighs on rates, brokers said. Capesize rates from Brazil to China have dropped by $4 per tonne in the last week, equivalent to a daily earnings fall of about $6,000. Port congestion in Australia and China which helped propel rates to three-year highs earlier this month is also expected to ease. Hold-ups at Hay Point and Dalrymple Bay, one of the world's largest coal export facilities and where at least one panamax bulk carrier waited more than six weeks to load, are set to clear.

Freight rates for large dry cargo ships on key Asian routes, which hit three-year highs this week, are likely to rise further on a shortage of ships available for immediate charter, brokers said. Rates for 180,000 deadweight tonne (DWT) capesize ships are set to break $10 a tonne from Australia to China in the next few days, while rates could also surpass $20 a tonne from Brazil to China. "There are more chances of rates breaking $10 than $20 because the Australian market is more active among miners and vessel operators," a Singapore-based capesize broker said on Thursday.

Coal shipments from eastern Australia could stop for 3-4 weeks. Freight rates for large capesize dry cargo vessels on key Asian routes, which fell to multi-week lows this week, are likely to remain depressed in the absence of Australian coal cargoes and iron ore and coal from South Africa, brokers said. Coal shipments from ports including Hay Point have been badly disrupted after Cyclone Debbie struck eastern Australia last week, causing extensive flooding and resulted in mine closures with BHP Billiton declaring force majeure on coal shipments. "The market is saying nothing will come out of the east coast of Australia for three or four weeks. If that's the case, shipments will be cancelled and vessels will need to find fresh cargoes," a Singapore-based capesize broker said on Friday.

Number of spot capesize cargoes double from January levels; Pacific capesize earnings now around $14,000 per day. Freight rates for large capesize dry cargo vessels on key Asian routes, which hit multi-month highs this week, are set to jump further next week on tight tonnage supply and buoyant cargo volumes, brokers said. Rates on the capesize route from Brazil to China soared to the highest level in nearly 18 months on Thursday, fuelled by chartering activity by Brazilian iron ore major Vale and ship operators including Louis Dreyfus, according to ship brokers and chartering data on the Reuters Eikon terminal. "I think we'll see rates continue to go up. The supply of tonnage for April loading is very tight. Tonnage is tight generally," a Singapore-based capesize broker said.

Capesize rates from Western Australia to China at 8-week high; shipowners parking ships off South Africa to stop rates falling. Freight rates for large capesize dry cargo vessels on key Asian routes could remain rangebound next week as abundant tonnage puts a ceiling on freight rates even as some owners resist attempts by charterers to push rates lower, brokers said. "I expect the market to take a breather. Rates have been on a yo-yo this week," said a Singapore-based capesize broker on Friday. Charter rates fell at the beginning of the week, but rebounded after charterers, including Cargill and Fortescue Metals Group, fixed ships from Brazil and Australia to China, he said.

Record iron ore prices fuelling capesize chartering boom; freight rates rise by around $1 per tonne in a week. Freight rates for large capesize dry cargo vessels on key Asian routes, which hit multi-week highs on Wednesday, are set to continue to climb next week on buoyant iron ore cargo volumes, brokers said. More than 30 capesize fixtures were reported in the week to Feb. 22, almost double the number in the last two months, according to data on the Reuters Eikon terminal. "The capesize market should continue to push higher for now - it's all looking good," a Singapore-based capesize broker said on Thursday. The surge in charters for capesize vessels…

Australia-China rates could climb on improved weather. Brazil-China rates to hold steady, fall on lack of charters. Freight rates for large capesize dry cargo vessels on key Asian routes could diverge next week with rates from Australia to China rebounding on improved weather conditions but rates from Brazil holding steady or slipping on thin chartering activity, brokers said. "For Australia, I believe rates will improve once the weather problems are no longer there," a Shanghai-based capesize broker said on Thursday. "The Brazil-China trade is totally controlled by Vale . They took a lot of tonnage for February loading, but now they are staying quiet," the broker told Reuters. "I heard Vale is offering March cargoes at around $9.50 per tonne," the broker added.

Floor may have been reached on Western Australia-China rates; dry cargo demand could fall 5.4 pct in first quarter. Freight rates for large capesize dry cargo vessels on key Asian routes are likely to hold around the current levels next week on ample tonnage supply even as chartering activity is likely to increase following the end of the Chinese New Year holidays. "Some people think rates may have hit a floor in the Pacific," a Singapore-based capesize broker said on Thursday. "At the moment there is no sign of a revival in rates. It really depends on the volume of cargo that comes out next week," the broker added. Both the Atlantic and Pacific basins are well stocked with capesize vessels waiting for employment, the broker said.

Brazil-China rates hit 15-month high for second time this year. Freight rates for large capesize dry cargo ships on key Asian routes could hold steady or slip slightly next week after unexpectedly climbing this week on strong cargo volumes, ship brokers said. "It is a case of two oceans. In the Atlantic, Vale has been active from Brazil, and volumes from Saldanha Bay in South Africa are steady," said a Singapore-based capesize broker on Thursday. "In the Pacific, it's a waiting game with owners and charterers haggling over a 50 cent difference in the freight rate," the broker added. This occurred as capesize freight rates on the Brazil-to-China route on Wednesday hit the highest level since September 2015 for the second time this year following a surge in fixtures.

Despite lower rates, rental prices doubled from last year; capesize vessels totalling 15 million DWT to be delivered this year - broker. Freight rates for large capesize dry cargo ships on key Asian routes are likely to drift lower as tonnage volumes outpace cargo demand even as owners resist charterers' attempts to push rates lower, ship brokers said. Despite the subdued market, capesize charter rates are still around twice the level as compared with previous year. "The market is holding up relatively nicely. Last year, we didn't fix ships at current rates until June," a Singapore-based capesize broker said on Thursday. "Owners are doing what they can to resist charterers' lower offers, but there is no shortage of ships, especially in the Pacific," the broker said.

Brazil-China rates climb to a 15-month high; about 80 capesize, panamax ships waiting to unload around Tianjin. Freight rates for large capesize dry cargo ships on key Asian routes are likely to remain firm for at least two more weeks as bad weather conditions in China and Australia help tighten the supply of ships available for charter, ship brokers said. That came as capesize charter rates from Brazil to China climbed to a 15-month high on Thursday. The surge in freight rates on the Brazil-China and Australia-China routes have surprised ship owners and brokers who were anticipating a lacklustre market during the holiday season, brokers said. "The market is still looking firm.

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.

Chartering activity falls as holidays loom; Rio Tinto offering rates 5.5 pct lower than index level. Freight rates for large capesize dry cargo ships on key Asian routes will slide further next week in a lacklustre chartering market ahead of Christmas, ship brokers said. "The market is pretty dead," a Shanghai-based capesize broker said on Thursday, adding that: "It is hard to find the ship owner's person in-charge of chartering. Australian miner Rio Tinto was seen putting pressure on charter rates on Thursday, offering $4.80 per tonne for four capesize cargoes - nearly 30 cents per tonne, or 5.5 percent, lower than the benchmark rate at Wednesday's close, a Singapore-based capesize broker said. "Vale is sniffing around with cargoes for January-loading," the broker said.

Capesize rates 26-33 pct higher than a year ago, but could fall towards Chinese New Year. Freight rates for large capesize dry cargo ships on key Asian routes may fall further next week as prospects for a pre-Christmas rally fade with ship supply outpacing cargo demand, ship brokers said. With Christmas and New Year holidays looming, rates could drop for at least the next six weeks until after Chinese New Year at the end of January, brokers said. "Rates are likely to meander down until they find support from iron ore and fuel prices," a Singapore-based capesize broker said on Thursday. Rates from Western Australia to China could drift…

Freight rates for large capesize dry cargo ships on key Asian routes, which fell to an eight-week low on Wednesday, are likely to continue to slide next week as charterers drip-feed cargoes in an over-tonnaged market, brokers said on Thursday. "There is no charity out there. The market can go as low as charterers can drag it," said a Singapore-based capesize broker on Thursday. That came as capesize rates from Brazil and Western Australia to China dropped by $1-$1.50 per tonne in a week. "I don't see much hope in the market.

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.

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.

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.

Capesize rates slip from year-long highs as miners absent; owners still optimistic of Q4 rate bounce. Freight rates for large capesize dry cargo shippers on key Asian routes, which hit the highest in about a year last Thursday, are set to remain buoyant during China's week-long National Day holiday that starts on Saturday, ship brokers said. "The market is always firm during Golden Week holidays, so I don't think the capesize market will fall off a cliff," a Shanghai-based capesize ship broker said on Friday. "I think the market will stay around current levels and maybe go up a bit as we start the fourth quarter," the broker said. Capesize…

Holidays in Asia likely to dampen chartering activity; Outlook still "slightly positive" for fourth quarter. Freight rates for large capesize dry cargo ships on key Asian routes could hold steady around current levels next week in a quiet market, ship brokers said on Thursday. That came after charter rates cooled this week after hitting their highest in nearly a year on Monday. Holidays in China and South Korea this week and Japan next will subdue chartering activity, brokers said. "My guess is the market will be very quiet," said a Shanghai-based capesize broker. Rates for capesize ships from Western Australia to China will "hopefully stay in the $5 per tonne range," said a Singapore-based capesize broker.

More activity from Australian miners buoy capesize rates; dry cargo market remains over-tonnaged as fleet growth outpaces demand. Freight rates for large capesize dry cargo ships on key Asian routes should stay largely unchanged next week on static cargo volumes though shipowners remain confident about prospects in the fourth quarter, ship brokers said. "I feel it's another boring week. People still have confidence in quarter four," a Shanghai-based capesize broker said on Thursday. That came as Rio Tinto fixed the 178,623 deadweight tonne (dwt) capesize ship Mount Austin on Thursday to haul iron ore from Western Australia to China at a rate of $4.40 per tonne, brokers said. The rate was about 10 cents higher than the Baltic dry bulk index rate for the route on Wednesday.

Owners anchoring ships rather than fix at low rates. W. Australia-China capesize rates hit over two-month low. Freight rates for large capesize dry cargo ships on key Asian routes are likely to hold steady as ship owners resist charterers' attempts to push rates lower amid a dearth of cargo, ship brokers said. "We are reaching a floor, particularly in the Pacific. It's got to the point where owners just won't fix their ships," a Singapore-based capesize broker said on Thursday. "Charterers are seeing a bit of resistance - owners are anchoring ships," the broker added. That came as spot charter freight rates for an 180,000-deadweight tonne capesize vessel slipped below $4 per tonne for a voyage from Western Australia to China on Wednesday. That is the lowest since mid-May.

Number of idle ships down to around 15, from 70 in early 2016 - broker. Freight rates for large capesize dry cargo ships on key Asian routes could nudge lower next week although they are generally expected to remain around the current levels, ship brokers said. "Owners still have confidence in the market," a Shanghai-based capesize broker said on Thursday. That was reflected through the number of idle capesize ships, which were down to 15 vessels this week, the broker said. That compared with around 70 at the beginning of this year when daily charter rates were less than the operating costs. "I think rates will remain above $4 per tonne for Australia, and $9 or $8.80 a tonne from Brazil," the broker said.