Strong Demand Hikes Bulk Shipping Rates

The dry bulk shipping sector posted its best first half year performance in a decade with rates for Capesize, Panamex and Supramax vessels topping US$30,000/day, Oils & Fats International reported on July 15 citing Freight Waves report.  “This year’s remarkable rally is yet to run out of steam,” Maritime Strategies International said in its latest outlook.

Rates for Capesize ships rose to US$33,300/day, according to Clarksons Platou Securities, while Panamaxes were earning US$32,800/day and Supramaxes US$31,600/day. It is rare for rates for all three size categories to simultaneously top US$30,000, as they had for a two-week period, according to the report. Panamax and Supramax rates were now at fresh highs for the year, with the former rates more than double their five-year average and Supramax rates more than triple theirs, Freight Waves wrote.

Oilseeds are usually transported on Panamax vessels, which can carry 60,000-100,000 dwt of cargo, as well as smaller Handymax (35,000-50,000 dwt) or Supramax carriers (50,000-60,000 dwt).  The dry bulk market includes iron ore, coal, grains, oilseeds, steel, cement, forest products, agricultural products, non-ferrous minerals, and metals.