The first quarter is usually the weakest period in the dry and the Container markets, with February the low-point of the year depending on the exact timing of Chinese New Year. No wonder then that there is so much red-ink across our market compass on the opposite page. The inten-sity of the rate falls was exceeding expec-tations, though, especially in the cape-size sector. The tailings dam disaster and consequent losses in iron ore shipments ex Brazil coupled with the withdrawal of Chinese chartering demand during the Golden Week melded into a kind of per-fect storm for the largest bulkers. Average spot time Charter earnings were slashed by more than half, with rates still fragile and softening again at the time of writing. A return of Australian iron ore miners to the market and short waves of tonnage fixing for Brazil cargoes to China was not enough to turn the market around and lift average rates above operating costs again. Brokers cited a persistent lack of cargoes in the North Atlantic and a rise in redeliv-eries of period vessels onto the market as factors for the prolonged slump.
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