- If loading grains on big Capesize ships was unusual, shipping wooden logs on these huge bulkers is an exceptional move by traders to keep freight costs under check.
- The source added that Capesize ships are restricted by the cubic capacity of its cargo-holds, especially for log stems.
- Some physical restrictions are not limited to just the loading and discharging port facilities, but also possible cargo and hold damages by taking on this business.
A recent news article published in the Platts features the plight of Capesize ships as they ship wooden logs on these huge bulkers.
What is Capesize bulkers used for?
Capesize bulkers, predominantly used to move iron ore and coal, left the market agog after a Capesize ship — the 2013-built, 181,415 dwt MV Cape Pelican — was reportedly being chartered to load logs from Uruguay’s Montevideo port for shipment to North China.
MV Pacific Myra
This comes hot on the heels of the 2019-built, 180,000 dwt Capesize ship, the MV Pacific Myra, which is controlled by trading house Cargill, being fixed to load grains from Paranagua and due to reach the Brazilian port on March 27.
Logs are typically moved on the Handysize/Handymax, or Supramax, class bulkers in the 28,000 dwt/38,000 dwt and 57,000 dwt range ships, respectively.
Some of the Handysize/Handymax bulkers are specialized log carriers, dedicated to this business.
Situation in recent times?
In recent times, the wide freight spread between the Capesize and the smaller Panamax and Supramax bulk carriers has resulted in charterers trying to hire the larger ship to save on freight costs.
According to multiple industry sources, the Cape Pelican, managed by Zodiac Maritime, which was expected to arrive at the Brazil iron ore loading port by end-March, or early-April, is scheduled to load logs from Montevideo. When contacted, Zodiac declined to comment on the matter.
Freight rates to move logs?
The freight rate to move logs on the Cape Pelican was reportedly at a lumpsum amount below $4 million for shipping about 90,000 Japan Agricultural Standard, or JAS logs.
“It is interesting to see Capesize bulkers, which are typically mineral carriers, move logs amid the technical challenges,” a ship-owning source said.
The freight indicated for the Montevideo to Lanshan route for Supramax and Handysize ships was in the range of $55-$70/JAS.
JAS, developed by Japan’s Agriculture and Forestry ministry, is a system used for measuring roundwood and considers the shortest diameter of the log.
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Source : Platts
