Asia Capesize Rates to Hold Steady with All Eyes on Atlantic

By Keith Wallis

SINGAPORE, July 23 (Reuters) – Freight charges for capesize bulk carriers are prone to maintain regular subsequent week though a rush of cargo within the Atlantic would once more present the set off for charges to maneuver increased, ship brokers mentioned.

That got here after a surge in Atlantic and transatlantic cargoes boosted capesize freight charges from Brazil to China by virtually $2 a tonne to a seven-month excessive this week.

The enhance was equal to an increase in time constitution earnings of about $4,500 per day, in response to British delivery providers agency Clarkson.

“All eyes (are on the Atlantic),” mentioned a Singapore-based capesize dealer. There is room for optimism with wholesome cargo volumes anticipated within the Atlantic and transatlantic, the dealer mentioned.

Fixtures by Oldendorff, Cargill and Vale helped push charges increased within the Atlantic this week, Reuters chartering information confirmed.

But a Shanghai-based capesize dealer was extra pessimistic concerning the outlook subsequent week with the final Brazil-China constitution concluded at $14.50 a tonne.

“The market is stable but I don’t see support to push the market up,” the Shanghai dealer mentioned.

In the Pacific capesize charges might stay at round present ranges, brokers mentioned.

“$6 is the ceiling which is not overly surprising given the Pacific is always under pressure because of the volume of ships,” the Singapore dealer mentioned.

Charter charges for the Western Australia-China route have been round $5.98 on Wednesday, increased than $5.56 per tonne final week.

Rates for the Brazil-China route climbed to $14.75 per tonne on Wednesday, up from $13 per tonne final Wednesday, the best since Dec. 9.

Freight charges for smaller panamax vessels are anticipated to nudge decrease after they rose to their highest in additional than seven months this week on robust iron ore cargo volumes, a Singapore-based panamax ship dealer mentioned on Thursday.

“It feels a bit shaky,” the panamax dealer mentioned. “There’s not much cargo around for forward dates.”

Rates for a transpacific voyage rose to $8,192 per day on Wednesday, up from $7,507 per day per week earlier, the best since Dec. 3.

Freight charges for smaller supramax vessels remained agency this week with charges of between $7,000-$8,000 per day for coal cargoes from India to China, Norwegian ship dealer Fearnley mentioned in a notice on Wednesday.

The Baltic Exchange’s foremost sea freight index was up at 1,118 on Wednesday, in contrast with 951 final Wednesday, and will rise in the direction of the subsequent resistance at 1,254, in response to technical evaluation. (Reporting by Keith Wallis; Editing by Sunil Nair)