Rates for panamax dry bulk carriers on key Asian freight routes are expected to fall
Rates for panamax dry bulk carriers on key Asian freight routes are expected to fall next week with an increasing amount of tonnage weighing on an already oversupplied market, ship brokers said.
The rate for panamax vessels traveling via the transpacific route dropped 6 percent to a 12-day low of $11,581 a day on Wednesday from $12,321 last week on ample vessel supplies and limited demand.
”We have seen a good volume of tonnage entering the market, though fresh cargo orders are fewer in number,” said broker firm ICAP. ”It is perhaps too early to say, but this may lead to a softening in rates.”
The Baltic Exchange’s main sea freight index on Wednesday eased three points or 0.26 percent from the previous session to 1,149 points.
Technicals indicated the benchmark index would retrace to 1,036 in a week, as it may fail a resistance at 1,137.
Benchmark capesize fixture rates from Australia to China eased nearly 2 percent to a one-month low of $7.508 a tonne on Wednesday from $7.638 last week on slower trading activity.
”The cape market has continued to be depressed,” said broker firm Fearnleys. ”The only bright spot is that US coal has become competitive in the Chinese market and several sales have been concluded with tonnage ballasting from the Far East.”
Rates for the Brazil-China route also slipped to a one-month low of $20.736 a tonne from $21.018 last week.
Source: Reuters
