Shipping and Logistics

May 14, 2016
MID-SHIP and Logistics Update May 2016
Written by Sandy Williams
The May 12 MID-SHIP Report indicated the freight market took a downward turn last week. Capesize vessels hauling iron ore from West Australia to China dropped to $3.60 per tonne from a recent high of $4.50 per ton. Panamax, Handysize and Supermax also slid downward during the week.
Said MID-SHIP in a tongue twisting turn of phrase: “Forward Freight Agreements are an indication of the future fortune of the freight market.” MID-SHIP sees Handysize spot markets dipping for the summer before returning to current spot levels in fourth quarter. Supramax also will have a summer dip but finish a lower level in Q4. Panamax may do slightly better, increasing 10 percent in summer through Q3 to finish at approximately $800 higher than today’s spot prices in Q4.


