MSI: Dry Bulk Market Heading Into a Firm Festive Season
After a steady fall in average daily TCE spot earnings in October, November saw an inflection point for Capesizes as the dry bulk market is sailing into a firm festive season, swiftly followed by a New Year comedown, according to research and consultancy firm Maritime Strategies International (MSI). With rates soaring to over USD 16,000 per day, the Capesizes saw their highest rates since mid-2015. Some of this strength has translated to the Panamax market, although Supramax and Handysize earnings have been broadly unaffected. A basket of key commodity prices, including iron ore, coking and steam coal, have surged in recent weeks, with falls in domestic supplies in China a key driver. This trend is forecast to continue through the fourth quarter but weaker iron ore and coal trade will impact Capesize and Panamax demand in the near term. “The Capesize market is demonstrating what might be termed ‘frothy’ characteristics with patches of strong chartering despite wea