From S&P Global Platts, November 15:
Fresh out of COP26 in Glasgow, key stakeholders now start to take in
the implications of the deals sealed at the summit, including the key
agreement on Article 6. Dry bulk shipping rates in Asia are under
pressure, while the agriculture space is keeping an eye on Australia's
bumper crop and Europe's sugar prices.
....2. Dry bulk freight rates in Asia snap out of bull run
What's happening? After witnessing a robust bull run since April, dry bulk freight rates across vessel segments have fallen steeply on the back of easing China port congestion, falling Chinese steel production and sharp drop in iron ore, thermal coal as well as other raw commodity prices. The S&P Global Platts Cape T4 Index – a trade flow based weighted average of four key Capesize routes – dropped 50.88% from $50,768/d on Oct. 20 to $24,938/d on Nov. 9. Over the same period, the KMAX 9 – trade flow based weighted average of nine Kamsarmax routes – dropped by 29.82%, while APSI 5 – a trade flow based weighted average of five key Supramax routes within the Asia Pacific – fell by 44.33%.
What's next? Given the slowdown in vessels joining the queue, market consensus view is for the freight rates to remain under pressure. However, supply disruptions are expected from time to time given the onset of winter in the northern hemisphere. Better availability of domestic coal in China and drop in steel production would keep a tab on demand to move seaborne thermal coal and iron ore cargoes.....
....MUCH MORE
