The trend for the future is towards greater specialisation in the dry bulk market, according to Drewry Singapore president and ceo Arjun Batra, who even went so far as to suggest that "VLOCs (such as the Valemaxes) will eventually push out capes".
Capesize spot rates have more than doubled in just over a week after an expected surge in Brazilian iron exports in the fourth quarter, and more gains are forecast.
Nippon Yusen Kaisha (NYK) is building up long-term contracts for its capesize bulker business as it aims bring it back to a stable profit.
In a move that would appear to break China’s ban on Vale’s 400,000 dwt VLOCs the Brazilian miner has signed a deal that four valemaxes will be transferred to Cosco and the Chinese company will build 10 more similar vessels.
Capesize rates are sitting on a “powder keg” driven by Chinese iron ore demand according to Commodore Research & Consultancy.
Golden Ocean Group has reported a second quarter profit of $1m on revenues of $67m, down from $43.4m profit on $74m revenues in the same period 2013.
After a 66% rise in capesize rates last week analyst Commodore Research & Consultancy believes they are set to “rise to much further” this year.
Despite a soft market, Knightsbridge Tankers reported a profit of $6.3m in the second quarter, bolstered by one-time gains of $5.8m from settlements and charter terminations.