Capesize Rates short-lived

Capesize rates looks set to be short-lived and might burst by the turn of the year. Capesize rates are highest level since mid-2015, in November 2016 capesize rates saw spot earnings peak at $16,000 per day. Analysts says capesize rates sparked due to higher commodity prices including iron ore, coking, steam coal and following a reduction in Chinese stocks. Analysts expect spot rates of capesize bulk carriers to fall back below operating costs in the New Year mainly due to weaker iron ore trade in the first and second quarter of 2017 and stronger Chinese coal production limiting coal import.