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Tuesday, January 23, 2018

Capesize Rates News

Capesize Rates Post Biggest Weekly Drop in 2 Years

File photo: © HHM / Dietmar Hasenpusch

The Baltic Exchange's main sea freight index fell on Friday and continued to linger around five month lows as the capesize segment recorded its biggest weekly percentage decline in two years. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels that ferry dry bulk commodities, shed 14 points, or 1.23 percent, to 1,125 points, the lowest since Aug. 10, 2017. For the week, the index ended 12 percent lower. The capesize index fell 118 points, or 7.32 percent, to 1,493 points, its lowest since Aug.

Baltic Index Drops to 5-month Low on Sinking Capesize Rates

© Aleksey Stemmer / Adobe STock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell nearly 5 percent on Wednesday to its lowest in over five months due to tumbling capesize rates. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, slid 57 points, or 4.7 percent, to close at 1,164 points, the lowest since Aug. 14. The capesize index fell 267 points, or 13.28 percent to 1,743 points, its lowest level since Aug. 9 last year.

Capesize Rates Pull Baltic Index to 4-month Low

© NS Photography / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, hit a more than four-month low on Tuesday, as capesize rates dropped to their lowest since August last year. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, lost 43 points, or 3.4 percent, to 1,221 points, the lowest since Sept. The capesize index fell 221 points, or 9.91 percent, to 2,010 points, its lowest level since Aug. 10 last year.

Capesize Rate Jump Driven By Japanese Steel Market

Booming Capesize rates have been driven by increased Japanese steel production more than they were by the August market raid by Belgium's Bocimar when it chartered about 35 ships, according to shipping sources. Capesize spot rates have doubled over the last three months with the market now looking for $15-16,000 for a Pacific round trip, compared with about $7,500 in August. Atlantic rates have also soared, although this is partly due to the grounding of the 274,326 dwt ore carrier Weser Ore at Tubarao in Brazil last week.

Capesize Rates Firm

Capesize rates firmed again worldwide but brokers said charterers were increasingly conducting business under the counter. Panamax rates were also firmer east of Suez with both Chinese and Japanese charterers active in the Indian Ocean and the Pacific, while Atlantic handysize conditions remained in the doldrums, they added. The Baltic Dry Index (BDI) rose 10 points to 1,491, the Baltic panamax Index gained one point to 1,419, The Baltic Capesize Index jumped up 27 points to 2,055 and the Baltic Handy Index firmed three points to 1,008.

Bulkers to Benefit as China Iron Ore Appetite Grows

Photo: © martinfredy/Adobe Stock

It has been quite awhile since the global bulk carrier market has had much to cheer about, but U.S. dry bulk shippers are set to post strong revenue growth in the next two years thanks to soaring Chinese demand for high-grade iron ore from Brazil and Australia. To combat severe winter smog, China has slashed iron ore output, pushing steel mills in the world's second biggest economy to import more high-grade ore. China also wants to make pollution control a priority for the next three years.

Baltic Sea Freight Index down on Weak Capesize Rates

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, dropped for a 14th straight session on Friday, driven mainly by falling capesize rates. The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, fell 27 points, or 2.62 percent, to 1,002. The Baltic's capesize index fell 76 points, or 4.08 percent, to 1,789 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $721 $11,042. Capesize rates have fallen about 32 percent this week. The panamax index fell 5 points, or 0.64 percent, to 782 points.

SS&Y Atlantic Index Up, Pacific Index Down

Shipbrokers Simpson, Spence and Young's Atlantic Capesize Index rose 162 points in the week ending Monday to 5,700. "Capesize rates strengthened overall by the middle of last week with rates from Richards Bay for October particularly strong, with fronthaul activity also firmer," SS&Y said. SS&Y's Pacific Capesize Index fell 11 points in the week ending Monday to 5,475. "The Pacific market saw a marginal re-balancing of tonnage supply in the charterers favor on certain positions," SS&Y said.

Capesize Rates to Rise Much Higher this Year

According to Commodore Research & Consultancy, capesize rates ended last week at $15,561/day, which marked a week-on-week increase of $6,167 (66%). Capesize rates have been able to rise by such a large amount so quickly, as vessel availability in both the Atlantic basin and Pacific basin have become tighter. Going forward, demand for capesize vessels is poised to rise even further as both Australian and Brazilian iron ore production is set to rise much further through the end of the year (the most significant element is that Brazilian iron ore production is set to rise by an extremely large amount and much less capesize vessels are available in the Atlantic basin). Coal shipment volume is also increasing in both the Atlantic and Pacific.

Baltic Index Slides for 4th Straight Day

© jcfmorata / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for the fourth straight session on Thursday, pressured by lower panamax vessel rates. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 3 points, or 0.3 percent, at 957 points. The panamax index dropped 31 points, or 3.4 percent, to 894 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell $253 to $7,192.

Baltic Sea Freight Index Up on Higher Capesize Rates

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Tuesday, mostly on higher capesize rates. The index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, rose three points to 602 points. The capesize index rose 15 points to 475 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose $114 to $4,415. Analysts, however, say capesize rates remain very low and do not cover operating expenses as there is abundant supply of ships in the market. There was "very little activity (in capesize segment) and plenty of idle ships", ship broker RS Platou said in a note on Monday.

Baltic Index Down for Eighth Straight Session

File Image (CREDIT: AdobeStock / (c) Lukasz Z)

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for an eight straight session on Thursday as rates for panamaxes and smaller vessels slipped, even as capesize rates strengthened. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 13 points, or 1.13 percent, at 1,134 points. The capesize index gained 8 points, or 0.45 percent, at 1,798 points. Average daily earnings for capesizes…

Asia Dry Bulk-Capesize Rates Under Pressure

A so-called ValeMax bulk carrier at the berth (File image: Vale)

Capesize rates fall in a quiet market as holidays weigh; 20 charter-free capesize ships could add to downward trend. Freight rates for large capesize dry cargo ships on key Asian routes are set to drift lower next week unless there is an uptick in chartering activity from major miners, ship brokers said on Thursday. "Unless there is a rush (by charterers) to the market to fix cargoes, we will not see any positive signs," a Shanghai-based capesize ship broker said on Thursday. "I think rates can fall further - maybe 25 U.S.

Baltic Index Up for Fifth Straight Day

© Volodymyr Kyrylyuk / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose for the fifth day this week, helped by higher rates for larger vessels. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was up 9 points, or 0.88 percent, at 1,032 points on Friday. The capesize index gained 35 points, or 2.18 percent, at 1,637 points. Capesize rates are ending the week on a much firmer note, with average earnings rising to about $13…

Baltic Index Dips Again on Sagging Capesize Rates

File Image (CREDIT: AdobeStock / (c) Lucasz Z)

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for the third consecutive session on Thursday, weighed down by weaker rates for larger vessels. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, fell 22 points, or 1.8 percent, to 1,200 points. The capesize index slipped 49 points, or 2.06 percent, to 2,333 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, declined $497 to $17,477.

Baltic Index Dips on Panamax, Smaller Vessel Rates

© a_medvedkov / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, slipped on Friday, as gains in capesize rates failed to offset lower rates for panamax and smaller vessels. The overall index, which considers rates for capesize, panamax, supramax and handysize shipping vessels, declined 10 points, or 1 percent, to 994 points. The panamax index slipped for the twelfth straight session, losing 25 points, or 2.4 percent, to end at 1,023 points.

Smaller Bulkers Buoy Baltic Index

File Image: a smaller, modern bulk vessel underway (CREDIT: FedNav)

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday, supported by stronger rates for smaller vessel segments even as capesize rates weakened. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was up 14 points, or 1.09 percent, at 1,296 points. The capesize index lost 3 points, or 0.13 percent, at 2,249 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $74 at $16,361.

Asia Bulk-Capesize Rates to hold firm during China holiday

file image (credit: BSM)

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.

Main Sea Freight Index at Baltic Exchange Raises

Pic:  Baltic Exchange Ltd

The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities rose further on Friday mostly on higher capesize rates. The index tracks rates for ships carrying dry bulk commodities. The overall index, which factors in average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, rose  rose 4 pts, or 0.67%, to 597 pts. The capesize index rose 11 points or 2.11 percent to 532 points. The panamax index was up six points at 642 points.

Baltic Sea Freight Index Down

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell for a ninth straight session on Friday on lower vessel activity. The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, fell 30 points, or 2.43 percent, to 1,205. The Baltic's capesize index fell 37 points, or 1.58 percent, to 2,306 points. Average daily earnings for capesizes, which typically transport 150,000 tonne cargoes such as iron ore and coal, were down $533 to $16,451. Capesize rates fell about 16 percent this week. The panamax index fell 14 points, or 1.67 percent, to 822 points.

Baltic Index Slips as Capesize Rates Fall

© a_medvedkov / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, slipped on Thursday as capesize rates fell for the second straight day. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 10 points, or 1.16 percent, at 855 points. The capesize index lost 85 points, or 6.24 percent, at 1,277 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $793 to $9,748.

Capesize Rates Ease

Easier conditions were seen for Capesizes in the Atlantic sector of the dry cargo freight market, brokers said last week. Some brokers believed that the gap between Capesize and Panamax rates could not be sustained and that some Capesize cargoes would be split into Panamax sizes. However, it was pointed out that Capesize contracts did not always permit this. Panamax rates were generally unchanged, while Handysize levels remained firm in the East and were said to be stronger from the east coast of South America. The Baltic Dry Index (BDI) was down two points at 1,684, the Baltic Panamax Index fell seven points to 1,513, the Baltic Capesize Index was unchanged at 2,369 and the Baltic Handy Index gained two to 1,181.

Asia Dry Bulk-Capesize Rates Steady

Brazil-China capesize rates hit seven-month high; Pacific capesize market dragged by buoyant tonnage supply. Freight rates for capesize bulk carriers are likely to hold steady next week although a rush of cargo in the Atlantic would again provide the trigger for rates to move higher, ship brokers said. That came after a surge in Atlantic and transatlantic cargoes boosted capesize freight rates from Brazil to China by almost $2 a tonne to a seven-month high this week. The increase was equivalent to a rise in time charter earnings of about $4,500 per day, according to British shipping services firm Clarkson. "All eyes (are on the Atlantic)," said a Singapore-based capesize broker.

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