IT IS two weeks since we last looked at freight markets and what FFAs can tell us about imminent developments. This week, there seems to be a change on the way. We examine the evidence. If a change is on the cards, there is little sign of it in the normally reliable bellwether of capesize FFAs. Yes, the Forward Curve has been marked up by $1/mt from a week ago, but the curve is still remarkably flat (a $0.50/mt spread covers the whole curve for the next two years) which means that the market can't see any reason for things to change dramatically. In fact, the marginal strengthening is probably due to a spin off effect of perceived strength in other markets rather than any underlying change for capesizes.
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