Capesize rates continued their upward climb on Wednesday as owners hold the line on fixture pricing and iron-ore prices remain above $100 per tonne.
The daily weighted time charter equivalent (TCE) average for the iron-ore carriers jumped 7.4% on Tuesday to $28,657 per day, according to Baltic Exchange assessments.
"The robust iron ore price, which has stayed above $100 per metric tonne for over three weeks now, still provides the main force for the freight uptrend while the seaborne coal shipping demand has been depressed by the depleting Chinese import quotas, market players said," Clarksons Platou Securities wrote in a note.
At the same time, shipowners held up their charter fees despite a lack of robust chartering activity in the Atlantic and Pacific basins.
"The capesize market witnessed freight rates edging up amid a sluggish trading day with many sources saying there was a standoff between charterers and owners, our brokers report," Clarksons said.
The freight forward agreement (FFA) market may also be boosting rates, having improved to $23,553 per day for July from $16,453 per day in June.
However, the Atlantic basin still had enough trading to play its part in keeping capesize rates on the upswing, the index said in its daily dry bulk market report.
"Capesize rates appear to have found their groove again, posting a solid $1,985 gain to settle the capesize 5TC at $28,657 per day", it said.
"Both basins had a show of strength as they both near the $30,000 mark."
Tuesday's high activity on front-haul fixtures in the Atlantic basin pushed up rates on the Europe-China leg up $4,500 to $45,900 per day, while the Brazil-China route also saw a "raft of trades" secured for July.
"Vale was heard to have fixed at least five cargoes with capesize tonnage from Brazil for China", the exchange said.
Five capesizes are set to sail from Brazil to China in mid-July at $21,000 per day.
