Easing capesize congestion adds to rates pressure
Congestion and inefficiencies in the fleet combined with strong demand for seaborne transportation tightened the market and sent spot rates spiralling upwards earlier in the year. Among other factors, a slight unwinding of that position has added to a recent softening in rates
Besides a small unwinding of capesize congestion outside China, the market slump has been caused by a slowing in the world’s second-largest economy combined with lower exports of iron ore from Brazil. The forward curve is also currently leading sentiment in the physical market
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