Dry bulk iron ore vessel freight rates remain supported on pre-Lunar restocking needs

• Vessel freight rates for key routes rise by $0.8-2/dmt w-o-w
  
  
• Rise in enquiries post-Lunar holidays has supported freight rates
  
  

Dry bulk freight trade activities remained firm this week. The market is optimistic as the enquiries were seen to fulfil procurement needs ahead of the Chinese New Year holidays.

Asia-Pacific Supramax dry bulk (cargo capacity 50,000-55,000 t) freight rates for an iron ore-loaded vessel from the east coast of India to China was recorded at $15/tonnes (t) on 7 February, 2024, remained stable w-o-w, according to BigMint's assessment.

Route specifications:

• Australia-China: Freight rates have inched up on wet weather conditions in Western Australia. Additionally, enquiries from major miners have fixed for the post-holiday period.
  
  
• Brazil-China: This route has seen rise in freight due to increase in iron ore shipment from Brazil in the period of end February to March laycan. A hike in enquiries from China importers has supported freight to rise slightly.
  
  
• India-China: The route has witnessed dull movement as Supramax vessel market has slowed down as bunker prices are up and trade activity is lacklustre amid weak demand from steel exporters. A source stated, "Movement of ships are firm, as people want to book before Friday, as next week will be full off and bunker prices also shot up quite a bit compared to last week."
  
  

Capesize freight rises w-o-w: Capesize freight rates have increased due to long tonnage list and hike in enquiries and demand from Chinese importers post-holiday tenure. Trading activities for large vessels have surged as market players are fixing at higher levels pre-Lunar holidays.

Outlook: Dry bulk freight rates are less likely to see any major changes next week. However, the availability of vessels might pressure freight rates post-Lunar holidays.