According to a Platts report, freight rates to carry 59,000 million tonnes of bauxite cargo from Kamsar port in Guinea to San Ciprian in Spain on a Panamax-size vessel have dropped to a 21-week low of US$10 per tonne amid over-tonnage in the West African region.
The freight rate hit an all-time high of US$13 per tonne on October 16. After that rates have dropped US$3 per tonne or 23%.
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"On top of bunker sliding, Kamsar is seeing low rates because of tonnage oversupply," a dry bulk ship operator said.
According to market participants, ships from South Africa are finding it tough to find cargoes if they want to ship them to South America due to the current oversupply of tonnage on the Brazilian coast. So ship owners turned to the West African ports for loading the bauxite. This has led to too many ships leading to the Kamsar port while not enough cargo for owners to find cover.
The news spread that a Kamsarmax-size vessel was booked by Cobelfret at US$10.25 per tonne. This led to a slide in freight rates on Tuesday November 27. The freight rate for the Kamsar-San Ciprian Panamax route was last assessed at US$10 per tonne, down 25 cents from Wednesday.
Kamsar is a port city in Guinea, West Africa which has one of the busiest Kamsar port. It is located on the mouth of the Río Nunez. It has a standard gauge railway line feeding bauxite from the mine at Sangarédi to the port.
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