A lackluster start to the year for the capesize market has seen Morgan Stanley cut its rate forecasts for 2018.

Analyst Fotis Giannakoulis says disruptions to iron ore movements have seen capesize rates under perform expectations in the opening three months of the year.

As a result, Giannakoulis has downed his 2018 capesize rate forecast from $22,000 per day to around $17,000 per day.