* Freight rates climb after BHP-led charter flurry
* Tight tonnage supply bolsters capesize freight rates
By Keith Wallis
SINGAPORE, Aug 6 (Reuters) - Freight rates for capesize bulk
carriers could hold around current levels after reaching their
highest in more than eight months this week following a surge of
fixtures by Australian miners, ship brokers said.
Rates from Australia to China were around $7.50 per tonne on
Thursday, while a voyage from Brazil to China paid around $16
per tonne, Singapore and Shanghai capesize brokers said.
While capesize rates felt softer on Thursday, prices are
being supported by tight tonnage supply in both the Atlantic and
Pacific, brokers said.
There were about six capesize vessels available for charter
in the Atlantic with up to eight ships charter-free in the
Pacific, a Shanghai capesize broker said.
Ship brokers had expected rates to soften this week, but
they rose by more than $1 per tonne after a raft of deals by BHP
Billiton BHP.AX , Rio Tinto (LONDON:RIO) RIO.AX and Cargill CARGIL.UL as
China rebuilt its iron ore stocks, shipping sources said.
A decline in port stocks suggested steel mills have boosted
production ahead of production cuts to ensure clean air in
Beijing next month for the World War II parade, Australian bank
ANZ said in a note on Thursday.
"A large amount of cargo volume has been fixed in the last
two-and-a-half days," a Singapore capesize broker said on
Thursday, with each capesize capable of carrying 170,000 tonnes
of iron ore.
BHP Billiton (LONDON:BLT) chartered between 12 and 20 ships this week,
against one last week, paying between $7.60 and $7.75 per tonne
for five of the charters, according to the Singapore broker and
Reuters chartering data.
Charter rates for the Western Australia-China route .BAWB
were around $7.66 per tonne on Wednesday, compared with $6.40
per tonne a week ago, and the highest since Nov. 27.
Rates for the Brazil-China route .BATB climbed to $16.41
per tonne on Wednesday, compared with $16 per tonne last week,
the highest since Dec. 4.
Freight rates for smaller panamax vessels will likely
continue to slide on reduced cargo volumes, a Singapore-based
panamax ship broker said on Thursday.
Rates for a transpacific voyage .BPHJ dropped to $6,121
per day on Wednesday, compared with $7,183 per day a week
earlier, the lowest since July 1.
Freight rates for smaller supramax vessels climbed this week
with around $9,000 per day paid for Asian spot cargo, brokers
said on Thursday.
The Baltic Exchange's main sea freight index .BADI rose to
1,222 on Wednesday, from 1,104 a week earlier, and is expected
to rise to 1,254 in a week, technical analysis shows.
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