Capes pass $30,000 mark, hitting four-year highs

Capes pass $30,000 mark, hitting four-year highs

Capesize freight rates crashed through the $30,000 mark yesterday, hitting highs not seen for four years. Brokers pointed to the tight supply situation in the Atlantic basin for the rapid improvement in fortunes for the cape market seen over the past week. Gas shortages in China have also sparked a notable uptick in coal imports over the past six weeks.

The bullish tone in dry bulk was noticeable at last month’s Maritime CEO Forum held in Hong Kong where Keith Denholm, managing director at Lorentzen & Stemoco Singapore, commented: “We are on a steady path of growth. Steel prices are soaring. Raw material prices are still relatively low. China is lacking in quality coking coal and iron ore – their imports are going to continue to grow. A lot of infrastructure projects shelved earlier are coming back.”

During the same dry bulk panel, Angad Banga, the COO at the Caravel Group, said: “We have seen some improvements in the underlying fundamentals.” Banga said there had been most notable growth in coal and grains. “Underlying demand in China is strong,” he added.

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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2 Comments

  1. Berndt Olesen
    December 13, 2017 at 6:12 pm

    “freight rates crashed” ? I think that they did the opposite……

    1. George
      December 18, 2017 at 4:44 pm

      Hi Berndt
      no mistake here, it is an English idiom, check an online dictionary for reference
      means breaking a threshold in an abrupt or violent manner [crash through]