Capesize and Panamax earnings slip

London (Simpson, Spence & Young) - Capesize earnings have continued to fall in the past week to the current level of $30,123/day, down by $10,733/day (-26%) week-on-week. The arrival of ballasting tonnage helped to push Atlantic round voyage rates down, with a decrease of $10,000/day to the current level of $30,727/day.

Fronthaul (Atlantic-Pacific) earnings have moved from $63,000/day one week earlier to $47,381/day, the lowest level since mid-October 2009, due to constraints on export availability of iron ore in Brazil.

The Capesize fleet continues to expand at a fast pace with the opening weeks of 2010 seeing the confirmation of 10 Capesize newbuilding deliveries (and the entry into service of another converted tanker). The Pacific basin continues to remain over-tonnaged despite rising congestion at Australian and Chinese ports.

Average Panamax earnings have slipped to $26,519/day.