After experiencing a good run last week, the Capesize market stumbled at the opening of the week but subsequently recovered some of the lost ground by mid-week.

The capesize market has surpassed expectations amid the World Cup lull, posting higher rates as activities picked up across all the Asia-Pacific routes.

Certain segments of the secondhand vessels market are set to do very well over the next two years. According to the VesselsValue & ViaMar’s Market Asset Value Forecast for the second quarter, LR1 product tankers, handysize bulkers and panamax container ships are seen benfitting the most from an upturn in market conditions, although all segments are seen rising

Freight market is showing much lethargy this week, which is similar to the week before as the shipping activities slowed down in June.

Under the shadow of a likely trade war between US and China, the freight market showed lethargy with little activities and weaker derivatives.

The freight market has returned to pre-Labour Day holiday level by the end of the week, thanks to robust steel demand.

The freight market went relatively quiet for the week, ahead of the upcoming May holiday in China. There were no last-ditch fixtures seen just before holidays period and the strong Capesize rates might be the only deterrent for the Baltic Dry Index to slide under the 1,300 level and allowed the index to stabilise at a respectable level of 1,375 reading on Thursday, 26 April 2018.

The Baltic Dry index (BDI) seemed to walk out of its shadow and posted an uptick this week, with improvement seen in the Capesize market as well as support drawn from the consistent-performed Panamax market.

Tonnage oversupply has dampened the overall freight market outlook this week, especially in the case of the oversupplied capesize market.

Capesize paper market started the week on bearish notes after a slight recovery from the trading near the floor on the previous week. News of US tariffs on steel imports and China’s lower iron ore imports in February certainly did not help the capesize market either and cast more doubts on the market outlook ahead.

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