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Capesize rates fall 23% in Feb, forward curves show signs of sustained recoveryCapesize rates fall 23% in Feb, forward curves show signs of sustained recovery

Capesize bulker rates fell 23% in February dragged down by the Chinese New Year holidays, however, panamaxes showed some signs of bottoming out according to a report from the Singapore Exchange (SGX).

Marcus Hand, Editor

March 2, 2015

1 Min Read
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The SGX monthly freight review noted that capesize, supramax and handymax rates fell 23%, 9% and 12% respectively in February. Panamax rates however rose 6% last month. This coincided with an 11% fall in the Baltic Dry Index in February dropping to the lowest levels in its 30-year history.

“The Chinese New Year holiday pressured capesize rates, with hopes now pinned on stronger Brazilian iron ore exports to Asia to drive prices upwards. Sentiment on the whole remained negative amidst severe oversupply coupled with demand uncertainties,” the report said.

There are some positives to be drawn from the forward curve though, especially for capesizes.

“The February forward curves closed pricing in a sustained recovery over the coming months for capesize rates, while expectations for other vessel classes remain slightly up,” SGX said.

Looking at its freight derivatives business SGX said it traded 9,485 contracts in February 2015, up 328% year-on-year, with 3,505 panamax contracts an increase of 423% on the previous year, and 4,830 capesize contracts, an increase of 217%.

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About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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