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David Hannon, Senior Editor -- Purchasing, 2/3/2005 2:00:00 AM
Bulk ocean shipping rates are expected to come back down to earth in early 2005 as more ocean vessels come online to compete for business and as Chinese commodity demand slows slightly. Shipbroker Clarkson expects the world Capesize ocean fleet to grow by 8%, which will lower the average cost of hiring a Capesize vessel by 25% to $52,500.
According to London-based Baltic Exchange, Capesize rates peaked at a record $105,519 a day in December before falling to about $95,000 a day in late December. Daily Panamax earnings reached a record $51,802 a day on Dec. 1, the Baltic Exchange said, and have since fallen to about $38,000 a day.
Oil tanker capacity is expected to increase by 6.4% in 2005, according to Oslo-based shipbroker P.F. Bassoe. That will drop the price of hiring very large crude carriers about 33% to $66,250 on the benchmark Middle East-to-Japan route, according to analyst estimates.
Futures contracts that allow rates to be locked in for 2005 were priced at $56,000 a day in late December for Capesizes and $31,700 a day for Panamaxes, according to Oslo's International Maritime Exchange.
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