Capesize bulkier spot rates have been lower than Panamax rates for weeks, so much lower that Cargill has fixed one that it controls to carry a load of grain from East Coast South America.

The trader has confirmed chartering the 190,000-dwt Pacific Myra (built 2019) to load grains out of the Brazilian port of Paranagua.

The ship is expected to arrive at the Parana state port on 27 March and move a Panamax-sized grain cargo to Europe.

"From time to time, Cargill will fix capsize bulk vessels to carry grain," a company spokesman told TradeWinds on Friday.

Cutting emissions

"We are uniquely positioned to do this as we have a long-term fleet and a parcelling team who combine cargoes that would have otherwise been shipped on smaller vessels.

"This is beneficial for our customers as it lowers per ton freight rates and reduces emissions."

The vessel, which is just west of the northern tip of Indonesia, is ballasting toward Paranagua at 13.5 knots with an expected arrival date of 26 March, according to VesselsValue.

Capesizes usually carry iron ore and coal instead of smaller Panamaxes, which typically haul grain.

Capesize spot rates are usually higher than Panamax rates, but that has not been the case since early February for myriad reasons, such as a strong US grain market and China's ban on Australian coal, taking tonnage off the market.

The Baltic Exchange's Panamax 5TC, a weighted average of spot rates on five key routes, has surpassed the capsize 5TC since 2 February, when Panamax rates came in at $14,615 per day and beat those for capsizes by $562 per day.