Panamax bulkers gain on China’s love of grain, brokers say
High rates in the Atlantic basin are bolstering those in the Pacific basin, according to EastGate Shipbrokers. Panamax bulker spot rates are starting off 2021 on a strong note amid China's robust demand for grain, having risen steadily since markets reopened on Monday after the holidays.
The weighted time-charter equivalent (TCE) average for the asset class came in at $13,533 per day on Thursday after three straight days of gains from $12,272 per day on Monday, according to the Baltic Exchange.
"The year started with a merry sentiment and although we were indeed cautiously optimistic about the robust Chinese grain demand and its positive impact on panamax rates, our expectations were exceeded," Athens-based EastGate Shipbrokers told TradeWinds.
The East Coast South America (ECSA) region is also producing enough grain to result in kamsarmax rates as high as $15,000 per day, it said.