Asian shipping rates were a shade firmer this week, supported by steady demand for South American grain, brokers said on Tuesday. In the period market, time-charter rates for the benchmark route from the US Gulf to Japan were estimated at $20,000 or more a day, against $16,000 last week.
In the Pacific market, rates were around $18,000-$19,000 a day, steady from last week, but traders said sentiment was positive.
"Shipping activities in the Atlantic market are becoming brisk because of new crops from South America," said an official at a South Korean shipping company.
New crops from South America, such as soybeans from Brazil, begin to head out to global markets in large quantities in April.
"South America's grain season is supporting market sentiment but vessel demand for South America crop seems to start earlier this year, so the expected sharp rebound of rates may not be realised in April," the official said.
Market participants are also awaiting results of iron ore talks between world's top miners and Chinese steel makers. Ma Jianwu, managing director of Guangzhou Iron and Steel Corp Ltd, said Tuesday the talks are likely to be concluded in early April.
Freight rates for dry bulk cargoes are expected to rise once China and its major iron ore suppliers reach an agreement, but Chinese steel mills are hesitating to arrange April shipments because of tense talks.
Modern panamax rates for the benchmark US Gulf to Japan route were estimated at slightly over $35 a tonne on Tuesday, compared with $34 per tonne a week ago, but traders said there had been no new deals.
"Many of the shipping deals have been flowing to handymax vessels because rates are often lower," an official with a Japanese shipping firm said.
He said rates for handymax vessels were $33 or lower, reversing the trend of lower rates for larger panamax vessels.
A panamax-class vessel, often used to transport grains and other dry bulk commodities, carries 55,000-80,000 tonnes, while a handymax vessel carries 22,000-40,000 tonnes.
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