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Capesize market continues to slide

Capesize market continues to slide

The short-term outlook for the dry bulk sector, as exemplified by its bellwether capesize market, remains 'weak', reports the Baltic Exchange, pending any 'significant fresh injection of visible enquiry.'

Capesizes continued to slide last week in all areas. Cargoes were in steady supply, but the continued relative oversupply of tonnage particularly in the Pacific allowed the rates to drift lower. Congestion was unwinding, newbuildings appearing and a lack of demand from Australian shippers saw the West Australia/China rate drop to the low $8.00 region. More tonnage headed off in ballast to Brazil, but the Baltic comments that this was unlikely to offer relief to owners with rates from Brazil to China barely in the mid $20.00 range.

Aside from a brief move up on 8/9 September this downward trend is now 'almost three weeks old and gathering momentum,' comments the Baltic ominously.  [20/09/09]