$300,000 and counting: capesizes run riot

Hong Kong: The perfect storm that ushered in the initial bulk bull run back in October 2003 and then again last year has reappeared - long queues at loading ports combined with massively increased demand has brought bulk earnings led by capesizes to new highs. Unconfirmed reports last Friday had one fronthaul ship fixed from Brazil to China at an all time record of $300,000 a day.
Congestion at Brazil's Tubarao and Ponta da Madeira, as well as in Australia helped push the Baltic Dry Index to a new high Friday, climbing 3.5% to 11,459 points. China imported 43m tons of iron ore last month, 5m more than the same period last year.
All indications are that this week will see records being broken on a daily basis and the bull run is likely to last until September at the earliest. [19/05/08]