Capesize bulker rates continued to struggle on Monday as earnings for smaller ships took a turn for the better.
Panamax, supramax and handysize bulkers got up from the floor on Monday. The gains, however, were not enough to lift the Baltic Dry Index (BDI), which fell below 600 points today.
Supply stoppage
Imports of Australian coking are building up at Chinese ports due customs delays, according to Argus reports.
“While not an outright ban, they suggest it's a way to discourage imports from Australia,” said Noah Parquette at JP Morgan.
Ships are reportedly waiting 50 to 60 days to unload at ports in China, which Parquette commented “could help tie up supply in the near term”.
Heavy rains in Australia have also disrupted operations at two coal mines and have derailed a coal train near Hunter Valley, Australia's top thermal-coal-producing region.
At the same time, iron ore production in Brazil continues to be impacted by shutdowns at Vale-owned facilities around the country.
Brazilian authorities cancelled the licence for a dam that is critical for the operation of Vale’s Brucutu mine, which accounts 30m tonnes per year of the miner’s output.
The Baltic Exchange placed rates for capesize bulkers at $7,561 per day on Monday.
Panamaxes rose at $6,222 per day, with supramaxes at $5,038 per day.
The Baltic Dry Index sat at 595 points in Monday, down from 1,189 points at the start of this year.
