By Keith Wallis

SINGAPORE, March 3 (Reuters) – Freight charges for capesize bulk carriers on key Asian routes are prone to stay flat because the variety of vessels for rent outpaces cargo demand, ship brokers mentioned.

That got here regardless of a rise in variety of idled ships and ships despatched for demolition, brokers mentioned.

“I expect the market to stay at the same level for a while – at least one or two weeks,” a Shanghai-based ship dealer mentioned on Thursday.

“Generally, the first quarter is the weakest; we could expect an improvement in April,” the dealer added.

“The market is very flat – there is still a lot of vessels,” the dealer mentioned.

Around 70 capesize vessels are idled or obtainable for constitution within the Pacific with round 50 ready for cargo within the Atlantic, brokers mentioned.

Capesize vessels totalling 5.2 million deadweight tonnes have been offered for scrapping since January, a 94 % enhance in contrast with the identical interval final 12 months, figures from British delivery companies agency Clarkson confirmed.

But supply of recent capesize vessels this 12 months has matched the quantity despatched for demolition.

“Deliveries are a big number – 29 vessels have been delivered this year, also above 5 million dwt,” the Shanghai-broker mentioned.

The excessive imbalance (between cargo demand and tonnage provide) within the capesize market has not been seen for 3 or 4 a long time, Norwegian ship dealer Fearnley mentioned in a word on Wednesday.

“(The) focus is divided between spot challenges and concern for big and medium industry names struggling to survive. Daily spot earnings have dipped a further 10-15 percent week-on-week to an apocalyptic $2,200,” the Fearnley word added.

That in contrast with present each day working prices of round $7,000-$7,500, in accordance with accountancy agency Moore Stephens.

“Mineral volumes keep on disappointing for both fronthaul, transatlantic and transpacific,” Fearnley mentioned.

Capesize constitution charges for the Western Australia-China route climbed to round $3 per tonne on Wednesday, up from $2.92 a tonne final Wednesday.

Rates for the Brazil-China route slipped to $5.45 per tonne on Wednesday in contrast with $5.72 per tonne the identical day final week.

Rates on each routes have been range-bound for the final two months.

Panamax charges for a North Pacific round-trip voyage rose to $3,387 per day, up from $2,926 per day final week. That is the best since Nov. 13.

Rates had been buoyed by elevated chartering volumes within the Pacific that had been supported by an increase in grain cargoes within the Atlantic, a Singapore-based panamax dealer mentioned on Thursday.

Freight charges for smaller supramax vessels had been firmer on elevated fixing exercise, Fearnley mentioned.

The Baltic Exchange’s principal sea freight index rose to 335 on Wednesday, up from 322 final week, however may take a look at resistance at 348, Reuters technical evaluation confirmed.

(Reporting by Keith Wallis; Editing by Biju Dwarakanath)

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