July 2021

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15-July-2021

Freight rates for capesize bulk carriers are plummeting. China reduced the demand for iron ore, one of the two main cargoes for the capesize business. China’s iron ore imports fell to their lowest in 13 months in June 2021. Analysts expect China’s iron-ore consumption to fall during Q3 2021. China reduces its annual crude steel output to reach its emissions targets. In June 2021, China’s iron ore imports slipped to 89 million tonnes. Front-end capesize bulk carrier contracts took the greatest hit. Capesize bulk carrier contracts traded at $32,750 per day by mid-afternoon. On the physical side, chartering activity for capesize bulk carriers has been relatively steady but shipbrokers report that capesize bulk carrier freight rates have softened as charterers and shipowners look around for direction in the market. The Baltic Exchange’s capesize 5TC, a spot-rate average weighted across five (5) routes, plummeted to $30,272 per day. Furthermore, the China-Brazil capesize bulk carrier round voyage plummeted to $27,040 per day. Western Australia-China capesize bulk carrier route plummeted to $10.88 per tonne on Tuesday.