What would usually be one of the strongest times of the year for capesize bulkers continues to disappoint as average spot rates fell by 8% on Wednesday.
Baltic Exchange panellists cut a huge $1,833 from their assessment of the average capesize spot rate, weighted across five key benchmarks.
This put the basket assessment at $21,161 per day on Wednesday, the lowest level since mid-August.
The assessment has lost 30% of its value since the beginning of the third quarter, which usually sees a seasonal upturn in rates and chartering activity on the back of rousing Chinese demand.
But this year things are slightly different and China’s ordering activity has not been as hungry as hoped.
The post-Golden Week comeback that had been anticipated last week failed to materialise and Chinese sentiment remains weak.
Capesize rates have been being squeezed from all sides, with softer fixtures being reported over the past week from South Brazil and West Africa to China, as well as from East Coast Canada to Europe.
However, vessel demand from Australian iron-ore miners has remained relatively steady, but rates are softening.
Tuesday saw China voyages fixed at rates around 45 cents per tonne lower than previously, which weighed on overall sentiment.
Meanwhile, the consistent absence of good news and tanking sentiment has translated to bloodshed in the futures market.
Front-month capesize contracts have taken a brutal chop this week so far.
Bids for the November contract were at $20,650 per day as of noon in London on Wednesday. By way of comparison, the contract settled on Friday at $26,132 per day.
