* Owners seeking to push rates higher, close to year-long
* Dry bulk sector to see greater consolidation - BIMCO
By Keith Wallis
SINGAPORE, Oct 6 Freight rates for large
capesize dry cargo ships on key Asian routes are likely to
remain steady next week even as owners try to push rates up
close to year-highs, ship brokers said.
That came as charter rates stayed firm despite China's
week-long National Day holiday which ends at the weekend.
"Owners were asking around $6.10 per tonne from Western
Australia to China on Thursday and $13 per tonne from Brazil to
China," a Singapore-based capesize broker said on Thursday.
Freight rates are climbing towards the year-highs touched on
"The market has been rising on the back of operators
chartering vessels to move iron ore, but all the miners are in
the market today. The market has been pretty busy today," the
The operators included ship owners such as Germany's
Oldendorff and commodity traders Cargill and Hong
Kong's Caravel, chartering data on the Reuters Eikon terminal
"I think the market will level out and take another
breather. Everyone is now more bullish about the market. The
capesize market is looking good for the next month to six
weeks," the broker said.
A short-term shortage of capesize ships in the Atlantic
Ocean to transport iron ore from Brazil has resulted in stronger
rates, Norwegian ship broker Fearnley said in a note on
Capesize rates rose this week after slipping at the end of
Charter rates for the Western Australia-China route
were at $5.65 per tonne on Wednesday compared with $5.86 per
tonne the same day last week.
Freight rates from Brazil to China were at $12.14
per tonne on Wednesday compared with $12.35 per tonne last week.
That came as shipping lobby group BIMCO said the dry bulk
sector can only return to profitability in 2019 "if shipowners
deliver zero supply side growth, year-on-year".
The comments, made in a report published on Thursday,
reiterated those the body first made in May.
"The fragmented ownership of the dry bulk fleet cannot be
sustained over the length of the downturn and we will see
greater consolidation, meaning fewer and bigger companies," the
BIMCO report added.
Charter rates for smaller panamax vessels for a north
Pacific round-trip voyage fell to $5,769 per day on
Wednesday from $6,327 per day last week.
Chartering activity was muted leaving the Pacific panamax
market to slowly loose steam due to Asian holidays, the Fearnley
For smaller supramax vessels, freight rates in the Far East
fell to around $6,000-$6,500 per day this week on subdued
chartering activity compared with around $7,500 per day last
week, brokers said.
The Baltic Exchange's main sea freight index fell to
869 on Wednesday from 912 a week earlier.
(Reporting by Keith Wallis; Editing by Gopakumar Warrier)