Dry bulk iron ore freight rates exhibit diverse trends

• Freight rates positive for large vessels
  
  
• Mining majors active in fixing vessels for post-CNY holidays
  
  

Dry bulk freight trade remained dull this week amid Chinese New Year holidays. However, the market is bullish as enquiries have been exhibiting a positive trend, which has kept rates supported.

Asia-Pacific Supramax dry bulk (50,000-55,000 t) freight rates for an iron ore vessel from the east coast of India to China was recorded at $14/tonne (t) on 14 February, 2024, down marginally by $1/t w-o-w, according to BigMint's assessment.

Route specifications:

• Australia-China: Robust demand from major miners based in Western Australia has contributed to an increase in freight rates. Notably, the miners have fixed vessels for the period post CNY holidays. The enquires are fixed by the charters by deriving forward freight agreement (FFA), including demand for tonnage from major miners.
  
  
• Brazil-China: This route have witnessed thin trade as tonnage supply remained tight in the Pacific region. Enquiries from mining majors for large vessels have propelled freights - the enquires are fixed for early-March and May.
  
  
• India-China: Shipowners from India have not fixed much trade, whereas freight rates for the route have declined w-o-w. The freight sentiment remained flat as some ship charterers have not fixed any enquiries on low demand. A source informed: "Sentiments are flat. We did not see much movement due to the holidays in China."
  
  

Capesize freight rises w-o-w: Capesize freight rates have exhibited positive sentiment, as demand for large vessels are significantly noted from the mining majors. Trading activity will be witnessed from the last week of February with high tonnage volumes.

Outlook: Dry bulk freight rates are likely to remain firm for the next week. The movement of ships will resume post Lunar holidays, the hike in enquiries from miners has been noted, and may rise in near future.