Profits in the bulk dry cargo market are expected to remain at satisfactory levels in the near future, since, according to freight brokers, the daily rates of bulk carriers remain high, despite the recent correction.
Restrictions on daily vessel transits announced by the Panama Canal until February 2024, due to low water levels from the drought, are forcing many vessels to take alternative routes and leading to an increase in miles, and as a result to higher profits from daily charters, an Intermodal analyst said.
Moreover, he pointed out that another factor that supports freight rates for bulk carriers is the congestion in Brazil’s largest export ports that peaked in October, since this year there is a record production of soybeans, corn and sugar, combined with the historically low soybean production in Argentina.
Daily charters
In the latest weekly report of the freight brokerage company Intermodal, it is stated that there was a significant increase in profits for the transport of dry bulk cargo in all sectors of bulk carriers, especially in the largest capesize vessels, which exceeded 50,000 dollars per day in the spot market.
Also, the index that tracks earnings for smaller panamax vessels has reached historic highs this year, as the average daily charter price reached 21,067 dollars, a 63% increase since the beginning of the year.
Shipbrokers believe the new highs, approaching 2021 seasonal levels, signal yet another resilient and profitable year for dry bulk.
