Capesize rates could nudge lower after cargo flurry
Freight rates for capesize bulk carriers are likely to take a breather and drift lower after climbing to their highest level in nearly eight months this week following bad weather delays and charterers' need for urgent tonnage, ship brokers said.
"It's been really hot. Both the Atlantic and the Pacific have become overheated. That's why I think it will be bit of a quiet week," said a Shanghai-based capesize broker.
"Owners are pushing for more than $16 per ton from Brazil to China, while charterers are offering $14 per ton. There is a nice $2 spread which means nothing will be done while both sides reassess the market," said a Singapore-based capesize broker.
"I think it will be soften a bit," the Singapore broker said.
Freight rates from Brazil to China rose more than $1 per ton in the week as charterers fixed vessels for early and mid-August loading, Reuters data showed.
This need for prompt tonnage had been caused by bad weather delays, the Shanghai broker said.
"There's still optimism that quarter four will be busier, but there are lower rate expectations" with daily rates forecast between $15,0000-$20,000, the broker added.
Iron ore exports from Brazil and China could climb by more than 78 million tonnes in the second half, said Jeffrey Landsberg, managing director of U.S. maritime consultant Commodore Research & Consultancy in a note this week.
"We remain bullish for capesize rates in Q3 and Q4," he said. (Reuters)
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