It would appear so according to the largest dry cargo market rundown from Clarksons Platou Securities.
Analyst Frode Morkedal says higher iron ore activity and steady supply of vessels have been the main factors in the rising market, which has seen rates set successive highs for 2015.
He believes a jump in demand coming first in the Atlantic and now in the Pacific in isolation lifted rates from $7,000 to $11,000 per day.
“Other factors helping the market was increased ballasting of ships into the Atlantic and the fact that Brazil’s own (Valemax) tonnage appears fully employed, hence incremental volumes now require more spot tonnage than before,” he said in a report today.
Morkedal told clients he feels the dry bulk market has fundamentally bottomed out.
“The volatility we have seen in rates reflects a tighter market balance and, crucially, that the oversupply is not structural,” he said.
“Fleet growth is now coming down sharply due to high scrapping activity of older ships but also, more importantly, due to very limited newbuild orders.”
Improvements in the capesize market slowed today but gains were seen across the board with the Baltic Dry Index rising to 1,222 points.
