September 20th, 2018

Market Behaviour

Moving together

Logic and experience tells us that the different sectors of the freight market should move together. If rates in the Capes get too high, cargoes can be split into two Panamaxes, and so on through the sizes, distributing demand downwards and linking the sectors together. And it works the other way too, with shippers looking for the economies of scale of combining cargoes onto bigger ships, forcing the smaller vessels to compete against the bigger ones. But looking at how the market has moved this year, the traditional relationship seems to be breaking down

 

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