Asia Dry Bulk -Capesize rates to climb further after hitting six-month high
By Keith Wallis
SINGAPORE Oct 30 (Reuters) - Rates for capesize bulk carriers on key Asian routes could hold steady or climb higher next week after surging to their highest level in more than six months on strong chartering activity from iron ore miners, including Vale and Rio Tinto, brokers said.
Freight rates on routes from Brazil and Australia to China were trending higher than Baltic Exchange prices, Reuters chartering data showed on Thursday.
The surge in freight rates has added about $6 per tonne to the cost of shipping iron ore from Brazil to China compared with a week earlier, while rates from Western Australia to China have gained about $1 per tonne.
Rates are at the highest levels since the end of March and early April, although they are off the highs recorded during the rebound in the dry bulk market last year when rates for a voyage from Brazil to China hit $31 per tonne in September 2013.
"I don't think it will push up to $30 a tonne this time," said a Singapore capesize broker on Thursday. A balance in the number of vessels and cargoes would cap freight rate gains, he said.
Rates could ease before nudging higher next week, he said.
Chartering activity tailed off on Thursday as miners and traders took a breather after fixing a flurry of vessels since Monday, the broker said.
"It looks quite tight in terms of tonnage for Brazil. If Vale keeps taking ships for November loading it will get very tight," the broker said. Continuación...