The average spot rate for capesize bulkers has marked its third straight day of gains, returning the market to heights not seen since October.
The capesize 5TC, a spot-rate average weighted across five key routes, improved 18.7% since last Thursday to $37,181 per day on Tuesday, according to Baltic Exchange data.
"On the last day of November, both BCI [Baltic Capesize Index] and 5TC recorded the highest value of the month and recovered back to the level last seen in end October, at 4,483 points and $37,181 respectively today," the Baltic Exchange said in its daily report on dry bulk shipping.
The capesize market last achieved these levels on 28 October, when the BCI came in at 4,542 points and the capesize 5TC reached $37,669 per day.
The China-Brazil round voyage's average spot rate jumped 28.9% during this period to $31,371 per day on Tuesday, reflecting the largest rate leap among 10 monitored capesize routes.
On Tuesday, Genco Shipping & Trading fixed its 179,185-dwt Genco Tiger (built 2011) to an undisclosed charterer to ship iron ore in late December from Brazil to China at $30.90 per tonne.
By comparison, Star Bulk Carriers chartered its 207,800-dwt Star Virgo (built 2017) to Vale on Thursday to carry iron ore on the same route in late December at $25.30 per tonne.
Despite the recent upward trend in the physical market, the capesize sector is pointing downward on paper over the next few months.
The forward freight agreement rate for December contracts came in at $34,357 per day on Tuesday, while January contracts were assessed at $23,393 per day and February contracts at $15,643 per day.
