Bulk rates to decline further on Asian routes amid glut of ships

Rates for capesize bulk carriers on key Asian routes will fall more next week as cargo owners bide their time chartering ships and shipowners fail to resist charterers' attempts to push rates lower, brokers said.

"It's all looking pretty grim," said one Singapore-based capesize broker, with rates on capesize routes from Australia and Brazil to Asia around the lowest since late May.

"Charterers have cargoes available but are in no rush to fix vessels in the hope of pushing rates lower. There is no resistance to accept lower rates from owners. There are just too many ships."

There has been some chartering activity this week by Australian miners including Rio Tinto and Fortescue Metals, and Vale from Brazil.

"But the market is not getting the volume of charters to lift rates," the broker said.

Vale's July fixture programme is mostly concluded.