Cargill snaps up capesize for $1,000 per day

Dire capesize conditions saw Cargill fix a Mitsui OSK Line relet for $1,000 per day, as the Baltic Exchange average time charter rate was at its lowest-ever level recorded.

US-based commodities multi-national Cargill fixed the 180,180 dwt, 2007-built MOSK relet Linda Dream for a transatlantic round voyage, well under the Baltic Exchanges index price of $1,864 per day.

Last week Cargill fixed the 171,218 dwt, 2003-built CIC Elli S for a backhaul voyage at $1,250 per day.

An industry source said that the low rate fixed for the Linda Dream reflected the unprecedented crisis in the capesize market, which is that bad.

Today the capesize average time charter rate fell to $2,773 per day, down $456 from a day earlier, and its lowest level since the Baltic Exchange began reporting this rate on March 1, 1999.

Imarex options broker Jeffrey Landsberg said the situation for the capesize market looked very grim.

For anyone looking for some positive news in the capesize market, the only offering is for increased scrapping, Mr Landsberg said.

Scrap prices have been holding steady in the low $200 per ldt range, however, so expect to see additional scrapping in the coming weeks.

Cash-rich China has increased their presence in the scrapping market which should make it easier for owners to find scrap buyers and about 20% of the capesize fleet is 20-years old or older, he added.

Source: Asian Shipper