Freight rates to carry a 59,000 mt bauxite cargo from Kamsar in Guinea to San Ciprian in Spain on a Panamax-size vessel have dropped to a 21-week low of $10/mt amid over-tonnage in the West African region.
Since hitting an all-time high of $13/mt on October 16, rates have dropped $3/mt or 23%, S&P Global Platts data showed.
According to market participants surveyed, ships opening up in South Africa face difficulty in finding cargoes if they ballast to South America due to the current oversupply of tonnage on the Brazilian coast.
As a result, owners have looked further north, to West Africa, and this has led to the same situation of too many ships with not enough cargo for owners to find cover.
“On top of bunker sliding, Kamsar is seeing low rates because of tonnage oversupply,” a dry bulk ship operator based in Athens said.
Freight rates slid on Tuesday after a Kamsarmax-size vessel was heard to have been fixed by Cobelfret at $10.25/mt for a December 5 laycan. The freight rate for the Kamsar-San Ciprian Panamax route was last assessed at $10/mt, down 25 cents from Wednesday.
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