- Capesize tonnages digested by Panamax cargoes
- Pacific rates inch down due to slim cargo list
Capesize markets in the Pacific and Atlantic regions ended the week on a quiet note amid limited fresh shipping demand. Overall, market sentiment for the March window was firmer on the back of the improving Capesize FFA segment. Though the bunker market fell, the bunker price remained at a decent level to support shipping freight rates, market players said.
Meanwhile, Capesize ships were observed trying to load Panamax stem cargoes for commercial benefits with Panamax freight rates still costly.
“The Capesize market still sees support from a robust Panamax market, which helps digest some Capesize tonnage supply,” a ship-operating source said.
In the Pacific region, freight rates inched down due to a slim cargo list.
“Tonnage list is quite tight, so I am quite surprised to hear that Rio Tinto fixed at $7.25/wmt on the Dampier-to-Qingdao route for March 14-16 laycan,” said a shipbroker, adding that CJK was closed due to strong wind.
After the above fixture, the same charterer was heard taking another Capesize ship at $7.15/wmt.
The indicative freight heard on the west coast Australia-to-Qingdao route was in the $7.15/wmt to $7.25/wmt range.
The freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore on the Port Hedland-Qingdao route was assessed at $7.20/mt, down 20 cents/wmt from Feb. 25.
The Atlantic freight market moved sideways without much seen across the basin during the Asian trading hours.
Out of Brazil and West Africa, owner resistance was observed.
on the Key Tubarao to Qingdao route, a Singapore-based shipbroker said that for the second-half March loading window, offers were at $16s/wmt. Fixture wise, RWE was heard fixing a Newcastlemax ship for mid-March laycan at $15.25/wmt.
The freight indicated on the Brazil-to-China route was in the $15/wmt to $15.80/wmt range.
The freight rate for a Capesize ship to move 170,000 mt (plus/ minus 10%) of iron ore from Tubarao to Qingdao was assessed at $15.50/wmt, up 60 cents/wmt day on day.
Out of South Africa, the story was quite similar with thin liquidity.
The freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Saldanha Bay to Qingdao was assessed at $11.95/wmt, up 35 cents/wmt from Feb. 25.