China factor in Baltic Exchange's new capesize routes

Reflecting the huge influence Chinese demand has on the capesize market the new routes C14, C15 and C16 focus on China iron ore and coal trades.

The C14 route is a round voyage from Qinqdao via Brazil with redelivery in China – Japan. The C15 route is 150,000 tonnes of coal shipped from Richard’s Bay to Quangzhou. The C16 route has elivery north China-south Japan range, for a trip via Australia or Indonesia or US west coast or South Africa or Brazil, redelivery UK-Cont-Med within Skaw-Passero range.

“Principals with substantial interest in route C16 have agreed to provide detailed fixture information on a regular basis to assist with the reporting of the route. This data will be held confidentially by the Baltic,” the Baltic said.

The C14 China – Brazil round voyage will have a 25% weighting, while C16 will have 12.5% rating.

“These are significant alterations which will impact traders, owners and charterers and are designed to reflect the realities of a changed dry bulk marketplace,” said Jeremy Penn, chief executive of the Baltic. “We have received a large number of written comments, held open meetings with members and stakeholders in Singapore and Geneva as well as held face to face meetings with key market participants.”