A close examination of recent spot chartering activity shows that 91 dry bulk vessels were chartered in the spot market last week. This is 12 less than were chartered during the previous week. Last week's vessel chartering activity included the chartering of 23 capesize vessels (9 less than the previous week), 38 panamax vessels (2 less than the previous week), 13 handymax vessels (2 less than the previous week), and 17 handysize vessels (1 more than the previous week). Despite the decline in chartering activity, rates for most of the dry bulk vessel classes found support last week. Capesize rates ended last week averaging $13,459/day, an increase of $718 (6%) from a week ago. Panamax rates ended last week averaging $5,122/day, an increase of $1,760 (52%) from a week ago. Supramax rates ended last week averaging $7,129/day, an increase of $36 (1%) from a week ago. Handysize rates ended last week averaging $6,008/day, a decrease of $268 (4%) from a week ago.

In the panamax market, rates finally found a floor last week as was widely anticipated. More panamax owners have idled their vessels and a few have wisely scrapped their older panamax tonnage. Panamax rates are also finding support as capesize rates remain supported, South American grain fixture volume remains strong, and more Indian thermal coal fixtures have been coming to the market.

In China, railway transportation volume has remained firm as China's economy continues to expand at a healthy pace. Recently released data shows that China’s railways transported approximately 190 million people in May. This is 8 million (-4%) less than were transported in April but 28 million (17%) more than were transported during May 2013. In total, the first five months of the year have seen Chinese railways transport a record 919 million people. This is 85 million (10%) more than were transported during the first five months of last year. Chinese rail construction is poised to increase further during the months ahead, which will support Chinese steel production and demand for imported iron ore cargoes. In particular, the Chinese government announced last week that it will be spending 327 billion yuan on fourteen railway projects.

Chart is attached (data is in 100 million passengers).