Asia Dry Bulk-Capesize rates to fall on lack of cargoes
By Keith Wallis
SINGAPORE July 10 (Reuters) - Rates for capesize bulk carriers on key Asian routes will continue to fall next week as the number of ships available for charter outpaces the volume of new cargoes, brokers said.
"There is a lack of activity. There are quite a few fixtures, but the market is not exactly busy," said a Singapore-based capesize broker.
The broker estimated around 12 capesize ships had been chartered by Thursday, mainly to haul iron ore to China from Brazil and Australia. That is half the number that were chartered in the first three days of last week, Reuters freight data showed.
The broker estimated there would be around 90 capesize vessels available for charter by the end of this week.
"There will be a gradual slide in rates. The market will continue to soften, although owners will resist lower rates where they can," the broker said.
Freight rates from Australia to China would fall below $7.50 per tonne and could head towards $7 per tonne next week, the broker said.
Charter rates from Brazil to China would drop towards $20 per tonne, he added.
Rates for the Western Australia-China route closed at $7.76 per tonne on Wednesday, down from $8.26 a week earlier. But the last concluded fixture was lower at $7.64 per tonne, the cheapest rate since May 29. Continuación...