A large amount of previously idled capesize vessels were put back into the market two weeks ago when average capesize rates climbed to approximately $8,000/day.  The current large excess of available capesize vessels has caused capesize rates to stay under pressure since July 10.  Capesize rates are now averaging $5,342/day, a decrease of $728 (-12%) from a week ago.  Capesize rates have continued to come under pressure, even though Chinese demand for imported iron ore cargoes remains firm.  22 vessels were chartered to haul iron ore to China last week.  This was 1 more than the previous week and the largest weekly amount of Chinese iron ore fixtures to come to the market since the Week Ending March 30.

 

The rest of the dry bulk market is being hit by vessel oversupply as well.  Panamax rates are averaging $9,219/day, a decrease of $365 (-4%) from a week ago.  Supramax rates are averaging $12,459/day, a decrease of $995 (-7%).  Handysize rates are averaging $9,519/day, a decrease of $486 (-5%).  Dry bulk freight rates are primarily coming under pressure due to an oversupply of vessels, as global cargo demand has remained firm.  Last week’s dry bulk fixtures consisted of a large amount of coal shipments from Indonesia, grain shipments from South America, coal shipments from Australia, and iron ore shipments from Australia.

 

13 Indonesian coal fixtures came to the market last week, 2 more than the previous week and on par with the trailing four week average.  The vast majority of the fixtures were made to ship thermal coal to various buyers in Asia.  12 South American grain fixtures came to the market last week, 9 more than the previous week but on par with the trailing four week average.  The fixtures were made to ship grain to various buyers in Asia and Europe.  11 Australian coal fixtures came to the market last week, 4 more than the previous week and up from the trailing four week average.  The vast majority of the fixtures were made to ship coal to buyers in Asia.  11 Australian iron ore fixtures came to the market last week, 4 less than the previous week but on par with the trailing four week average.  The vast majority of the fixtures were made to ship iron ore to buyers in China.

 

The remainder of last week’s fixtures consisted mostly of iron ore shipments from Brazil, shipments of various cargo from the US Gulf, and shipments of various cargo from the North Pacific.  6 Brazilian iron ore fixtures came to the market last week, the same amount as the previous week and on par with the trailing four week average.  All of the fixtures were made to ship iron ore to buyers in China.  6 US Gulf fixtures came to the market last week, 4 less than the previous week but on par with the trailing four week average.  The fixtures were made to ship a variety of cargo including grain, petcoke, and coal to various buyers in Europe, Asia, and the Middle East.  5 North Pacific fixtures came to the market last week, 1 less than the previous week and on par with the trailing four week average.  The fixtures were made to ship various cargo including coal and grain to buyers in Asia.