Ore Ships at Parity With Panamaxes May Extend Slump, Pareto Says

Charter rates for iron ore-carrying capesize ships may extend this year’s 64 percent slump once port congestion eases, according to Pareto Securities AS, an Oslo- based investment bank.

Rents for the vessels, which haul at least 160,000 metric tons of cargo, declined 18 percent to $9,959 a day yesterday, according to the Baltic Exchange in London. Panamax ships about half the size cost $10,663 daily to charter. It’s the first time in five months capesize rates have matched panamaxes.

About 5.8 percent of the dry-bulk fleet is delayed at ports, Pareto said, citing information from ViaMar, a company that tracks congestion.