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Falling cape rates 'due for correction'

Falling cape rates 'due for correction'

London: Asian owners and charterers figured prominently in what was another week of falling rates for large capesize bulkers, reports the Baltic Exchange, but at a slower pace with 'voices now suggesting the market is due for a correction'.

The BCI timecharter average dropped $15,706 from $81,362 at the end of last week. Yet there was still long term period activity and at still healthy numbers with reports today that two Transfield newbuildings delivering next year went for long term periods. A 180,000-dwt ex yard June Dalian for 10 years to Cosco at $52,000 daily nett and a 180,000-dwt ex yard Namura 1st quarter 2009 for 8.5 years at $57,500 daily to Glory Wealth. A Japanese charterer at the end of this week took a 180,000-tonner for year at $100,000 daily.

Brazil's Vale reportedly halting ore shipments to China over a price wrangle could be viewed two ways, continues the Baltic Exchange: less cargo to move but ships idle, waiting until this dispute is resolved will add to congestion. Voyage rates were just about hovering around $50.00 although a fourth quarter cargo was done at $57.00 or $56.00. Timecharter rates slipped under $100,000 daily while a 170,000-tonner was done today at $55,000 daily for a transatlantic round. As the week drew to a close there was talk of increased activity from Australia but voyage rates to China were still hovering in the $15.50-$16.00 range. BHP Billiton and Rio Tinto were largely absent from the market although the latter charterer was linked with tonnage today for a cargo from Dampier to Qingdao at $15.75. The Richards Bay/Rotterdam rate hovered the mid $20.00 range - about $3.50 down on the index rate last week.  [12/09/08]