The first Baltic Exchange report of the year shows earnings forthe vessels slipped from $39,000 daily on Christmas Eve to $35,300 daily today.

As TradeWinds reported over the holidays, heavy rains led Vale to chop iron ore shipmentexpectations out of Tuburao, while major Australian iron ore export hubs wereclosed due to a cyclone.

Omar Nokta of Global Hunter Securities said in a note to clientstoday: “Charter rates are expected to continue seeing pressure with the Q1 2014FFA contract trading around $16,000/day and the January 2014 contract at$21,000/day.”

He explains the force majeure declared by Vale on almost fourmillion tons of iron ore is equivalent to 23 capesize cargoes.

Nokta notes the first three months of the year are often theweakest for the capesize market.

Capesizes were earnings $5,000 daily at this stage in 2013, GlobalHunter’s figures show.