The capesize bulker market rose to a four-week high over the past week as fixture activity in the Atlantic basin picked up steam.
The Baltic Exchange’s Capesize 5TC basket of spot-rate averages across five key routes has risen 27% since 21 July to nearly $15,200 per day on Friday, reaching its highest point since 28 June.
“After a slow beginning to the week, the capesize market experienced a surge on Wednesday with a rise of over $2,500 in a day on its five time-charter routes average,” Baltic Exchange analysts wrote on Friday in their weekly wrap-up of the dry bulk market.
“Both front-haul and transatlantic business were particularly active whilst tonnage in the Atlantic tightened. Solid volume lent support and made the North Atlantic the strongest sector of the week.”
They noted that the average spot rate for the C9 route from Europe to the Far East had almost reached $36,000 per day on Friday, rising from just over $30,000 per day on 21 July.
They also pointed out that the average freight rate for the C3 leg from Tubarao, Brazil, to Qingdao, China, reached the mid-$19 range on Friday after rising 2.7% since 21 July to $19.64 per tonne.
That rate was reflected in a fixture by iron ore giant Vale, which hired the 205,400-dwt Max Warrior (built 2014) to ship iron ore on that route at $19.45 for mid-August loading, according to the analysts.
“Solid volume lent support and made the North Atlantic the strongest sector of the week,” the analysts said.
The Panamax 5TC posted a more modest gain over the past seven days, improving 5.5% since 21 July to $8,774 on Friday.
“It was an eventful week with the panamax market finally finding some life,” the analysts said.
