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Capesize rates fall 14.5% on Wednesday

Capesize rates fall 14.5% on Wednesday
Average spot capesize freight rates plunged 14.5% on Wednesday as the recent rally in the dry bulk market falters.

The Baltic Capesize Index (BCI) fell 260 points to 2,107 points on Wednesday, with the average spot rate dropping $2,604 to $15,266 per day. Overall the Baltic Dry Index (BDI) fell 69 points to 1,093 points. The BDI hit a year high of 1,222 points on 5 August, the back of a rally in the market that started in early June.

In its weekly report Fearnelys noted that the fall in the market at the end of last week and early this week had been put down to National Day holidays on Friday and Monday in Singapore, where many commodity traders have their shipping desks.

“A steady supply of new cargoes from Tuesday was expected, however the complete opposite happened and eventually rates dropped substantially only in two days’ time,” the report noted.

“In the Pacific, voyage rated have dropped by more than a dollar and TC rates are down by approximately $5,000 in short time. It is uncertain for how long this negative trend will remain,” Fearnelys added.