September 2021
29-September-2021
The capesize bulk carrier market experienced a notable shift on Thursday, with rates for transpacific round-trips witnessing a significant drop, disrupting the positive momentum seen in the Baltic Capesize Index since the previous week. The spot rates for the China-Japan transpacific round-trip (C10) route between South America and Asia declined by 6.6%, settling at $77,723 per day, as per data from the Baltic Exchange. In contrast, the benchmark round-voyage rate from China to Brazil and back saw a minor reduction of $159, closing at $64,255 per day. This downturn marks a pause in the bull run, particularly on the C10 route, which, despite the decline, remains approximately $13,000 higher than the Brazil-China roundtrip rates. The decrease in the transpacific rate is seen as a minor correction in the face of broader market instability, influenced by cyclone disruptions and fluctuations in the iron ore market. With the futures market significantly lagging behind spot rates, there’s an anticipation of a more pronounced drop in spot market prices in the forthcoming weeks. This adjustment reflects a slight weakening in the Pacific market, contrasting with the ongoing strength in the Atlantic basin, where rates are buoyed by a limited supply of vessels. The overall average spot rates for capesize bulk carriers, as measured by the Baltic Exchange’s capesize 5TC (a weighted average across five key routes), fell by $610 to $74,176 per day, interrupting a 22% increase observed from the previous Friday to Wednesday. Despite this, the Atlantic market’s robustness, driven by short vessel availability, presents a contrasting scenario to the Pacific downturn. In the derivatives market, Capesize Forward Freight Agreements (FFAs) for September showed some resilience, gaining $236 per day on Wednesday to settle at $54,257 per day, as reported by the Baltic Exchange. This movement in FFAs, particularly for prompt contracts, remains notably lower than current spot rates, highlighting a bearish outlook among traders for the near-term future of capesize bulk carrier rates.
12-September-2021
The Baltic Exchange’s assessment of Capesize Bulk Carrier Average Spot Rates (5TC) increased to $52,908 on 12 September 2021. Capesize bulk carrier spot rates reached the highest level observed since May 2010. The most prominent one-day leap of the 5TC was observed on 12 September 2021. Baltic Capesize Index (BCI) influenced the capesize bulk carrier futures market on Monday, especially for front-month contracts. October 2021 capesize future contracts were asking about $47,000 per day. Bauxite exporter Guinea is experiencing a rainy season and last week’s military coup increase the risks. Gigantic aluminum producer Emirates Global Aluminium (EGA) has a facility in Guinea. On the other hand, one of the biggest capesize charterers Vale is striving to obtain capesize bulk carriers to meet the demand. Vale chartered around 20 capesize bulk carriers for loading in October for voyages to China from Brazil, all at around $30.50 per metric tonne which is the most expensive level since November 2009. Iron ore prices are sinking, but fixtures for capesize taking ore voyages to China have achieved higher rates.