Dry Cargo

Cape market ‘on fire’: Fearnleys

Norwegian brokers Fearnleys describe the capesize sector as “on fire” at the moment in its latest weekly report.

“Weather delays in China and also significantly increased Brazil activity adding fuel to a market segment on fire,” Fearnleys stated, adding how currently it was “happy days” for capes. As well as improving iron ore demand and prices, Fearnleys reported coal transaction volumes have been higher than predicted.

“Forward pricing at USD 18.00 for C3 and USD 8.00 for C5 basis January loading gives reason for faith entering a normally challenging period. Average earnings coming in at USD 26,600, best so far in 2017 and up 18 pct w-o-w,” Fearnleys stated.

Nevertheless, the broker pointed out that the gap between physical expectations and FFAs is still prohibitive and consequent period activity has been limited. A notable exception, the broker observed was 2016-built, 170,000 dwt bulker delivering China prompt and fetching $17,000 a day on a 13-month contract.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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