* Capesize market "overheated" as rates near eight-month
highs
* Optimism for a busier fourth quarter - Singapore broker
By Keith Wallis
SINGAPORE, July 30 (Reuters) - Freight rates for capesize
bulk carriers are likely to take a breather and drift lower
after climbing to their highest level in nearly eight months
this week following bad weather delays and charterers' need for
urgent tonnage, ship brokers said.
"It's been really hot. Both the Atlantic and the Pacific
have become overheated. That's why I think it will be bit of a
quiet week," said a Shanghai-based capesize broker.
"Owners are pushing for more than $16 per tonne from Brazil
to China, while charterers are offering $14 per tonne. There is
a nice $2 spread which means nothing will be done while both
sides reassess the market," said a Singapore-based capesize
broker.
"I think it will be soften a bit," the Singapore broker
said.
Freight rates from Brazil to China rose more than $1 per
tonne in the week as charterers fixed vessels for early and
mid-August loading, Reuters data showed.
This need for prompt tonnage had been caused by bad weather
delays, the Shanghai broker said.
"There's still optimism that quarter four will be busier,
but there are lower rate expectations" with daily rates forecast
between $15,0000-$20,000, the broker added.
Iron ore exports from Brazil and China could climb by more
than 78 million tonnes in the second half, said
Jeffrey Landsberg, managing director of U.S. maritime consultant
Commodore Research & Consultancy in a note this week.
"We remain bullish for capesize rates in Q3 and Q4," he
said.
But the Shanghai broker said operators are not so
optimistic.
Charter rates for the Western Australia-China route .BAWB
were around $6.40 per tonne on Wednesday, compared with $5.98
per tonne last week and the highest since Dec. 3.
Rates for the Brazil-China route .BATB climbed to $16 per
tonne on Wednesday, up from $14.75 per tonne a week earlier, and
the highest since Dec. 4.
Freight rates for smaller panamax vessels are likely to fall
next week on reduced cargo volumes and increased tonnage
availability, a Singapore-based panamax ship broker said on
Thursday.
Rates for a transpacific voyage .BPHJ dropped to $7,183
per day on Wednesday, against $8,192 per day a week earlier.
Freight rates for smaller supramax vessels slipped this
week, Norwegian ship broker Fearnley said in a note on
Wednesday.
The Baltic Exchange's main sea freight index .BADI fell to
1,104 on Wednesday, compared with 1,118 a week earlier, and may
hover around 1,112 or retrace towards 997, technical analysis
shows. ID:nL3N10836J