Cape Earnings Bounce Back

CAPESIZE bulker earnings started to move up in the past week on steady flows of iron ore from Australia.

News ID: 74970

Date: 16 July 2017 - 08:35

According to MANA, the average weighted time charter on the Baltic Exchange gained 16% to $7,701 per day at the close on Thursday, while the index increased by 110 points to settle at 928 points.

There are “definite signs of improvement in the physical market at the moment with the Pacific enjoying consistent gains and the Atlantic potentially showing signs of tightening”, said GFI brokers in a note on Wednesday.

“Certainly there is a more positive feeling in the air and this has seen solid gains” in the forward freight agreement sector, GFI brokers said.

In the forward market, the third quarter was assessed at $11,600 and the fourth quarter was at $15,700, GFI figures showed.

“The dead cat continued to bounce,” said the Baltic Exchange in a daily roundup on Wednesday.

Steady flows were seen out of Australia, according to one market observer. These resulted in rates from Australia to China creeping up to $5.14 per tonne versus $4.40 a week ago.

The Brazil to China voyage also saw rates move up, to $12.11 per tonne from $10.80 on July 6.

In the asset market, a 2006-built capesize was sold for $17.2m, according to VesselsValue. That is an increase of $3m from a deal in December for a vessel of similar age.