By: Cyprus shipping news

The surge in demand for Cape Size bulk carriers will continue for another six weeks, driven on by increased orders from China for bauxite from West Africa, according to Capt. Pappu Sastry, CEO of Adhira Shipping and Logistics.

Bauxite prices have gone from US$73 in Sep 2024 to US$120 in January 2025 as an armada of ships wait to load in ports along the coast of West Africa for Cape Size carriers.

“When the ocean freight was low over New Year and Chinese New Year (CNY) holidays, the commodity price had gone up,encouraging exporters to increase volumes. The bauxite prices were not sustainable at a higher level and so many smelters postponed shipments to after the CNY holidays,” said Capt. Sastry.

Prices are now at US$95 in China and there is another surge in demand due to low inventories. Demand is mainly for bauxite from Guinea to China and at the same time the number of iron ore shipments from Brazil also came to market.

“This has triggered a spike in demand for Cape Size vessels and higher Indexed (C3) freights which will last well into April and May. It is important that mines, carriers and consignees are prepared for these fluctuations and have the support they need on the ground to manage the logistics from mine to port and final delivery overseas,” said Capt.Sastry.