October 2020

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23-October-2020

Baltic Capesize Index TCA (Weighted Time-Charter Average) increased to $18,749 per day on 23 October 2020. Baltic Capesize Index volatility has been relatively low this week. Capesize market players are optimistic for Q4 2020. Brazil iron-ore cargo supported the capesize spot rates. Capesize market exceeded to the downside late last week, due to negative sentiment rather than real cargo imbalance in the Atlantic. Abundant capesize tonnage supply in the Atlantic contributed remarkable pressure to capesize charter rates on the Brazil-China route and for trans-Atlantic voyages. However, mid-week, Brazil iron-ore cargoes reversed the situation and capesize spot rates increased. Brazil’s iron-ore giant Vale’s quarterly production report contributed positive sentiments for the capesize market. On the Pacific market, capesize bulk carrier supply reached something of an equilibrium with iron-ore cargo supply from Australia, which pointed to work in charterers’ favor. While the capesize bulk carriers experienced more favorable charter rates, supramax and handysize charter rates kept falling. Handysize TCE (Time Charter Equivalent) from the US Gulf to China decreased to $13,414 per day.