Brokers and analysts point to the Atlantic as a driving force although contrasting views remain about how long the good run will continue.
Capesize rates reached $18,065 daily on Monday with the overall Baltic Dry Index at 1,151 points.
Omar Nokta of Clarksons Platou Securities says the strong Atlantic activity has prompted more urgent capesize booking activity from charterers in both basins.
“Our Metals & Mining team notes that Vale iron ore exports are currently at their highest levels this year, which is tightening the balance of vessel availability,” he said in a report today.
“Recent indications from the management teams at all the major miners point to a major rebound in exports expected during the second half of 2015.
“We expect this will lead to a healthier dry bulk market, especially one in which vessel prices have likely found a floor.”
Amit Mehrotra of Deutsche said in report today that last year saw a sequential surge in dry rates in mid August and September, potentially boding well for the near-term outlook.
As the spot market rises, some period deals have taken place.
Cargill has hired the 179,000-dwt C Discovery (built 2010) on a five to nine month contract worth $13,750 daily.
Doug Mavrinac of Jefferies struck a cautious note with capesize rates at an eight-month high.
“Although dry bulk shipping spot charter rates continue to improve, and fleet growth remains minimal, we continue to believe the sustainability of the current rally in spot charter rates is uncertain given the recent reduction of iron ore production plans by the largest iron ore producers including Vale last week,” he said.
