Tighter dry bulk supply in the Atlantic and better coal demand stoking capesizes.
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| Songa Bulk chief executive Hermann Billung at Marine Money in New York City. Photo: John Galayda |
The Atlantic basin is keeping capesize rates firm amid good demand for coal cargoes and limited spot availability as more ships reposition in the Pacific. The Baltic Exchange's C8 index of spot rates for round-trip Atlantic voyages rose to $26,235 per day Tuesday, its best level in two years.
The C8 voyage has been outperforming the Baltic's capesize rate composite index since mid-October, rising 22% versus a 7% rise in average capesize rates.
Among the owners on that trade, John Angelicoussis' dry bulk arm booked the 179818-dwt Anangel Unity (built 2015) for the trans-Atlantic trip at $28,500 per day. Stellar Shipmanagement's 180000-dwt Stella Naomi (built 2016) was relet to MOL for $27,250 per day.
A commercial manager for a dry bulk shipowner cited seasonal demand for coal as helping drive the trade. Spot availability is also tight as most capesizes are engaged on time charter for ferrying iron ore from Brazil to China or are positioned in the Pacific for the trade from Australia
"There's not miuch tonnage available in the Atlantic," the manager said. "Most of it is already committed for the Far East. The C5 (Australia to China route) is still offering a decent return."
Dry bulk executives highlighted the stronger coal trade at a recent conference in New York. Songa Bulk chief executive Hermann Billung said India may be a strong customer for coal cargoes due to production shortfalls over the previous two months.
"They (India) are at critically low inventories," Billung said. "They missed their production targets for September and October. I see some short-term upside on India coal imports."
GoodBulk chief executive John Michael Radziwill noted his vessels lifted some 15 cargoes from the US East Coast to India in recent weeks.
source: www.tradewinds.com