May 12, 2014 - May 16, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,027 points, an increase of 30 points (3%) from a week ago. The panamax market saw a large increase in rates, and is continued to being helped by a large amount of South American grain cargoes coming to the market. Rates for capesize vessels also found support last week. Overall, spot chartering activity increased last week. In total, 136 dry bulk vessels were chartered in the spot market last week. This is 40 more than were chartered during the previous week. Sentiment in the market has improved. A total of 11 dry bulk vessels were chartered for period deals last week, which was 5 more than were chartered during the previous week.

Capesize vessels

Capesize rates ended last week averaging $11,205/day, which was an increase of $207 (2%) from a week ago. Spot Australian iron ore cargoes remained very firm last week, with all of the major players again very active. In total, 21 spot Australian iron ore cargoes surfaced in the market last week which was 2 less than surfaced during the previous week but still a very large amount. Only a few Brazilian spot iron ore cargoes surfaced again however. Only 4 spot Brazilian iron ore cargoes surfaced last week, which was the same low amount that surfaced in the market during the previous week. The rate of the Australia-Qingdao route has risen by 4.7% from a week ago to $7.873/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has risen by 12.7% from a week ago to $11,277/day. The rate of the Tubarao-Qingdao route has fallen by 2.9% from a week ago to $19.459/ton. The rate of the Tubarao-Rotterdam route has fallen by 6.5% from a week ago to $7.767/ton. In addition, the daily cost to charter a capesize vessel for an Atlantic round-trip voyage has risen by 5.6% from a week ago to $10,930/day. In the time charter market, the capesize time charter market was more active last week as two capesize vessels were chartered for period deals. This is one more than was chartered during the previous week. Most recently, a 177,000 dwt vessel was chartered for 5 to 8 months for a rate based on the index.

Panamax Vessels

Panamax rates ended last week averaging $8,328/day, which was an increase of $1,121 (12%) from a week ago. A very large amount of South American grain cargoes surfaced again last week which has helped panamax rates find a significant level of support. The rate of the Atlantic to Far East route has increased by 7.4% from a week ago to $15,454/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has increased by 58.1% from a week ago to $8,323/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has increased by 3.8% from a week ago to $7,938/day. The rate of the Far East to Europe route has risen by 4.5% to $1,596/day. In the time charter market, the panamax time charter market was somewhat active last week as five panamax vessels were again chartered for period deals. This is the amount that were chartered during the previous week. Most recently, an 81,000 dwt vessel was chartered for 10 to 14 months for $14,500/day.

Supramax Vessels

Supramax rates ended last week averaging $9,395/day, which was a decrease of $105 (1%). The large amount of South American cargoes is still helping the supramax market (although much less than the panamax market) and rates in the supramax market have managed to remain relatively flat as they have been throughout this week. The rate of the US Gulf-Europe route has increased by 5.4% to $11,019/day. The rate of the Black Sea to Far East route has declined, however, by 4.7% to $11,889/day. In addition, the rate of the Europe-Far East route has fallen by 4.7% to $13,825/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has fallen very slightly from a week ago to $9,559/day. In the time charter market, the supramax time charter market was much more active last week. Three supramax vessels were chartered for period deals. The previous week did not see any supramax vessels chartered for period deals. Most recently, a 57,000 dwt vessel was chartered for 3 to 5 months for $18,000/day.