Dry CargoEurope

Rio Tinto takes two capesizes on period charters

Three capesize bulk carriers have today been reported fixed on 12-month period charters, two of them for Rio Tinto, amid fresh optimism in iron ore markets.

The miner has taken Carras Hellas’ vessels Aquadiva (182,100 dwt, built 2010) and Aquaprincess (182,100 dwt, built 2009) for 12 months, each at a daily rate of $5,250. The vessels will deliver in Singapore and were fixed last week, but were first reported by brokers today.

Unipec has reportedly booked Navios Maritime Partners’ cape Navios Joy (181,389 dwt, built 2013) on a 12-month period charter at a more healthy rate of $6,500 daily. The ship will deliver to the charterer in China between March 10-20 .

The fixtures coincide with positive economic signals from China, which has boosted iron ore physical and futures markets. At China’s annual National People’s Congress, held at the weekend, authorities said they’d allow a record-high deficit and higher money-supply target to support economic growth of 6.5% to 7%. The downside is China also plans to cut overcapacity in steel, which could limit demand for iron ore in the longer term.

The news fuelled a sudden 19% uptick in iron ore prices on Monday, when ore with 62% content delivered to Qingdao reached $63.74 per dry metric ton, according to Metal Bulletin. The jump is reportedly the biggest daily gain in data going back to 2009, but is widely expected to be short-lived.

The optimism has extended to the capesize FFA market, which has seen steady increases for most contracts since Monday, especially for 160,000-tonne cargoes on the Tubarao, Brazil to Qingdao, China (C3) route.

A brand-new kamsarmax owned by Callimanopulos-led Marine Management Services was among other bulker period fixtures reported today. Trade Prosperity (82000 dwt, built 2016) was fixed to Cargill for 10 to 16 months for $6,250 daily. The vessel will leave China’s Jiangsu New Yangzijiang shipyard this month and will be delivered to the charterer in Shanghai on March 31.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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