May 26, 2014 - May 30, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 934 points, a decrease of 30 points (3%) from a week ago. The panamax market saw the largest decrease in rates as panamax fleet growth remains high. Capesize rates found the largest increase, however, as capesize fleet growth remains low and Chinese demand for iron ore import cargoes remains very strong. Consuming imported iron ore remains in the best interest of the Chinese environment. Overall, dry bulk spot chartering activity was fell last week. In total, 82 dry bulk vessels were chartered in the spot market last week. This is 43 less than were chartered during the previous week but last week only had 4 chartering days. A total of 5 dry bulk vessels were chartered for period deals last week, which was 6 less than were chartered during the previous week.

Capesize vessels

Capesize rates ended last week averaging $9,986/day, which was an increase of $265 (3%) from a week ago. Spot Australian iron ore cargoes remained very firm last week, with all of the major players very active. 19 spot Australian iron ore cargoes surfaced in the market last week which was an impressive amount and 2 more than surfaced during the previous week. Only a few Brazilian spot iron ore cargoes surfaced again however. Only 6 spot Brazilian iron ore cargoes surfaced last week, which was 1 more than surfaced in the market during the previous week. The rate of the Australia-Qingdao route has fallen very slightly to $7.677/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has risen by 6.1% from a week ago to $10,182/day. The rate of the Tubarao-Qingdao route has risen by 19% from a week ago to $19.264/ton. The rate of the Tubarao-Rotterdam route has risen by 11.2% from a week ago to $7.578/ton. In addition, the daily cost to charter a capesize vessel for an Atlantic round-trip voyage has increased very slightly to $8,525/day. In the time charter market, the capesize time charter market was more active last week as two capesizes vessel were chartered for period deals. This is one less more was chartered during the previous week. Most recently, a 169,000 dwt vessel was chartered for 6 to 9 months for $20,000/day.

Panamax Vessels

Panamax rates ended last week averaging $6,993/day, which was a decrease of $1,023 (-13%) from a week ago. A large amount of South American grain cargoes surfaced again last week but panamax fleet growth remains very high and this is putting pressure on panamax freight rates. The rate of the Atlantic to Far East route has decreased by 7.7% from a week ago to $13,904/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has decreased by 25.3% from a week ago to $5,819/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has fallen by 10.7% from a week ago to $6,844/day. The rate of the Far East to Europe route has decreased by 8.9% to $1,405/day. In the time charter market, the panamax time charter market was less active last week as two panamax vessels were chartered for period deals. This is four less than were chartered during the previous week. Most recently, an 80,000 dwt vessel was chartered for 4 to 8 months for $11,000/day.

Supramax Vessels

Supramax rates ended last week averaging $8,678day, which was a decrease of $374 (3%). While down again from a week ago (primarily due to supramax fleet growth remaining high and chartering activity being low last week), the supramax market continues to fare considerably better than the panamax market. The rate of the US Gulf-Europe route has declined by 2.3% to $10,722/day. The rate of the Black Sea to Far East route has fallen by 3.3% to $10,861/day. In addition, the rate of the Europe-Far East route has fallen by 4.2% to $12,763/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has fallen by 5.9% to $8,650/day. In the time charter market, the supramax time charter market was much less active last week. Only 1 supramax vessel was chartered for period deals. This is three less than were chartered during the previous week. Most recently, a 58,000 dwt vessel was chartered for 1 year for $13,000/day.