Global Spot Chartering Activity Remains Low

Through the first three days of this week, the Baltic Dry Index has fallen by 100 points to 1,273. This represents a decrease of 7% from the end of last week. Panamax rates have fallen the most as less South American grain cargoes are now surfacing. Panamax rates also remain under significant vessel supply related pressure. The rest of the dry bulk market remains under pressure, as well, as overall spot chartering activity has been low. However, Chinese demand for imported iron ore cargoes has stayed very strong which is very encouraging for capesize prospects. In total, the first three days of this week have seen 47 dry bulk vessels chartered in the spot market. In comparison, the first three days of last week saw a total of 42 dry bulk vessels chartered in the spot market.

Sentiment in the Dry Bulk Market Subdued

The first three days of this week have seen no dry bulk vessels chartered for period deals. In comparison, the first three days of last week saw a total 4 dry bulk vessels chartered in the period market. Sentiment has become even less positive as spot freight rates have come under more pressure. This is restricting period chartering activity.

Chinese Iron Ore Demand Remains Very Strong

The first three days of this week have seen 17 dry bulk vessels chartered to haul spot iron ore cargoes to Chinese buyers. This is a very large amount for three day's worth of chartering activity. Previously, the first three months of this year had seen an average of 12 vessels chartered to haul iron ore cargoes to Chinese buyers during Monday through Wednesday. Activity this week is well above this year's average, as Chinese demand for imported iron ore cargoes is very strong at present.

Drummond Colombian Coal Shipments Have Resumed

Colombia's environmental regulator has approved the upgrades that Drummond has made at its Colombian coal terminal. This has allowed Drummond coal shipments to resume. The first cargoes are being shipped using panamax and supramax dry bulk vessels, while capesize vessels are expected to be used starting in mid-April. Drummond Colombian coal shipments are expected to average close to 3 million tons per month during the remainder of this year. The return of the cargoes will help the dry bulk market, particularly the capesize segment of the market.