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 the continued signs of a thaw from China over Valemaxes China Merchants Energy Shipping (CMES) is to order 10 VLOCs for contracts with Vale.

Valemaxes: the world’s largest bulkers and the most controversial ships in commercial shipping in many years may finally be used as they were intended after a deal between Cosco and Vale last week.

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.

After a 66% rise in capesize rates last week analyst Commodore Research & Consultancy believes they are set to “rise to much further” this year.

The Subic Bay Metropolitan Authority (SBMA) has suspended iron ore transhipment operations by Vale during heavy rains after local residents complained of pollution.

A “very large surge” in Brazilian iron ore exports is being forecast by analyst Commodore Research & Consultancy, and is set to boost the capesize market.

Sarawak-based shipping conglomerate Shin Yang Shipping Corp (Syscorp) is expanding steadily, initiating services between ports in Indonesia, while also starting up operations at the new Samalaju Port in Bintulu.