Capesize vessel call to rise by 100% in Brazil

According to Cleaves Securities, the number of Capesize vessel currently in Brazil or that are expected to reach Brazilian waters in the next 30 days is about 125, a growth of almost 100% in one month.

When Vale’s Brazilian iron ore exports began to normalize a month ago, the number of ships of this tonnage was very small in the Atlantic basin, increasing the freight rate in July.

According to the report, Cleaves expects that freight rates will now ease in the short term.

The large Brazilian corn crop and the resumption of Vale’s operations in Brucutu (MG) in June – which had been operating at only a third of its capacity due to an injunction that prevented the use of the Laranjeiras dam after the Brumadinho disaster (MG) – contributed to the high demand for this type of ship.

Concomitantly with the rapid increases in Capesize vessel bound for Brazil, the number of these Capesize vessels bound for Australia has declined, which may help sustain spot rates in the Pacific region.

Source: Splash 247.com

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