Bullish Capesize Market

With booming sale-and-purchase activity and future rates trading well above the current spot rate, the bullish sentiment of the Capesize market is hard to ignore--even with the recent spot market rates’ correction ~40% below recent highs.

Case in point, FFA rates for May 2024 are trading at a ~$6,500/day premium to what vessels are earning today.

History shows that this level of disparity between current + future rates is not sustainable.

Either today’s vessel earnings need to rally to meet these optimistic expectations, or the hype around future vessel earnings will have to fade... either way mind the gap!