* Brazil-China capesize rates hit seven-month high
* Pacific capesize market dragged by buoyant tonnage supply
By Keith Wallis
SINGAPORE, July 23 (Reuters) - Freight rates for capesize
bulk carriers are likely to hold steady next week although a
rush of cargo in the Atlantic would again provide the trigger
for rates to move higher, ship brokers said.
That came after a surge in Atlantic and transatlantic
cargoes boosted capesize freight rates from Brazil to China by
almost $2 a tonne to a seven-month high this week.
The increase was equivalent to a rise in time charter
earnings of about $4,500 per day, according to British shipping
services firm Clarkson.
"All eyes (are on the Atlantic)," said a Singapore-based
capesize broker. There is room for optimism with healthy cargo
volumes anticipated in the Atlantic and transatlantic, the
broker said.
Fixtures by Oldendorff, Cargill CARGIL.UL and Vale
VALE5.SA helped push rates higher in the Atlantic this week,
Reuters chartering data showed.
But a Shanghai-based capesize broker was more pessimistic
about the outlook next week with the last Brazil-China charter
concluded at $14.50 a tonne.
"The market is stable but I don't see support to push the
market up," the Shanghai broker said.
In the Pacific capesize rates could remain at around current
levels, brokers said.
"$6 is the ceiling which is not overly surprising given the
Pacific is always under pressure because of the volume of
ships," the Singapore broker said.
Charter rates for the Western Australia-China route .BAWB
were around $5.98 on Wednesday, higher than $5.56 per tonne last
week.
Rates for the Brazil-China route .BATB climbed to $14.75
per tonne on Wednesday, up from $13 per tonne last Wednesday,
the highest since Dec. 9.
Freight rates for smaller panamax vessels are expected to
nudge lower after they rose to their highest in more than seven
months this week on strong iron ore cargo volumes, a
Singapore-based panamax ship broker said on Thursday.
"It feels a bit shaky," the panamax broker said. "There's
not much cargo around for forward dates."
Rates for a transpacific voyage .BPHJ rose to $8,192 per
day on Wednesday, up from $7,507 per day a week earlier, the
highest since Dec. 3.
Freight rates for smaller supramax vessels remained firm
this week with rates of between $7,000-$8,000 per day for coal
cargoes from India to China, Norwegian ship broker Fearnley said
in a note on Wednesday.
The Baltic Exchange's main sea freight index .BADI was up
at 1,118 on Wednesday, compared with 951 last Wednesday, and may
rise towards the next resistance at 1,254, according to
technical analysis. ID:nL3N1013FY