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Fourth quarter shortfall
A fourth quarter spike in dry cargo spot rates will fall short of the level seen a year ago, Norden believes.
Danish owner Norden says the highs reached in the final few months of 2013 were influenced by Chinese stockpiling rather than market fundamentals.
Martin Badsted, executive vice president of the owner, said: “[Rates] will be better from here, but not as strong as in the fourth quarter last year.”
His comments came after Noden reported a loss of $41.60m in the second quarter, deeper than the $22.38m red figure at the same stage in 2013.
Its bulker division lost $29.97m but its operating results are ahead of expectations.
Norden’s bulkers outperformed the market average by 57% in the quarter, Badsted says.
“Trade in nickel and bauxite will improve but is expected to be below the level from the second half-year of 2013, which was influenced by extraordinary stock building in China,” Norden said in its quarterly report.
“The greatest uncertainty factor remains the global coal transportation where even minor changes in consumption, production and prices may have a considerable effect on the need for transportation.”
As TradeWinds reported yesterday, a climb in the capesize market offered some more hope for a second half rally.
Erik Nikolai Stavseth of Arctic Securities says capes averaged $27,000 daily on the spot market in the final three months of 2013. This year he predicts that figure will reach $30,000 daily.