Panamax dry-bulk rates dipped slightly this week, but the long-term outlook remained bullish as new-crop shipments were expected to support demand in the coming months, Asian shipping sources said on Tuesday. Brokers attributed the weakening to the availability of ships for spot deliveries.
Modern panamax rates for the benchmark route from the US Gulf to Japan were indicated at about $54.40 to $55 a tonne in a quiet market, compared to $55 a week earlier.
He added that he had not heard of fresh orders for minerals yet.
Last October freight rates started to climb markedly, boosted by brisk demand for grains and minerals, particularly from China, eventually soaring to a record high of $75-$80 in February-March.
Demand for vessels often picks up towards the end of the year as new crops are harvested, and this year was unlikely to be an exception, shipping sources said.
New US corn, soybean and wheat crops, which are currently being harvested, are expected to come to market from September and October, while fresh crops are also expected from Europe and Australia.
Although traders said it was still too early to gauge the depth of China's appetite for grains and minerals in the coming months, traders said the country would continue to play a key role in directing freight rates.
Other shipping sources said India, and its demand for coal, was another factor that could boost demand for ships this year.
Freight rates briefly hit this year's low of about $35-$40 at the end of June to early July.
Shipping sources said current rates of $50-$55 were still very high when compared to a year earlier when rates were roughly at $30-$35. In the period market, timecharter rates for the US Gulf to Japan were quoted at $34,000-$36,000 a day plus $600,000-$650,000 ballast bonus (BB), brokers said.
This compares with last week's $34,000 to $37,000 a day plus BB of around $600,000.
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