July 21, 2014 - July 25, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 739 points, an decrease of 7 points (1%) from a week ago. Capesize rates remained basically flat while panamax and supramax rates were able to find support. In total, 120 dry bulk vessels were chartered in the spot market last week. This is 9 more than were chartered during the previous week. 10 dry bulk vessels were also chartered for period deals last week, which was 4 more than the previous week.

Capesize vessels

Capesize rates ended last week averaging $8,621/day, which was a decrease of just $27 from a week ago. Spot Australian iron ore cargo volume was strong again last week, with all of the major Australian iron ore miners very active in the market. 28 spot Australian iron ore cargoes surfaced in the market last week, which was 11 more than the previous week. A moderate amount of Brazilian iron ore cargoes also surfaced. In total, 6 spot Brazilian iron ore cargoes surfaced last week, which was 3 more than surfaced during the previous week. The rate of the Australia-Qingdao route has risen by 2.4% to $7.836/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has increased by 7.5% from a week ago to $8,950/day. The rate of the Tubarao-Qingdao route has fallen very slightly to $18.564/ton. The rate of the Tubarao-Rotterdam route has also fallen very slightly and now stands at $7.933/ton. In addition, the daily cost to charter a capesize vessel for an Atlantic round-trip voyage has remained flat at $5,090/day. In the time charter market, the capesize time charter market was not active last week. No capesize vessels were chartered for period deals last week. In comparison, the previous week also did not see any capesize vessel chartered for period deals.

Panamax Vessels

Panamax rates ended last week averaging $4,831/day, which was an increase of $150 (3%) from a week ago. Panamax rates have found support on the strength of firm demand for coal and grain cargoes. The rate of the Atlantic to Far East route has increased by 4.8% from a week ago to $10,843/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has increased by 22.7% from a week ago to $4,769/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has decreased by 15.7% from a week ago to $3,747/day. The rate of the Far East to Europe route has decreased to negative $36/day. In the time charter market, the panamax time charter market was more active last week as eight panamax vessels were chartered for period deals. This is two more than were chartered during the previous week. Most recently, an 82,000 dwt vessel was chartered for 4 to 6 months for $9,000/day.

Supramax Vessels

Supramax rates ended last week averaging $7,097/day, which was an increase of $211 (3%) from a week ago. As with the panamax market, supramax rates were able to find support last week on the strength of firm demand for grain and coal cargoes. The rate of the US Gulf-Europe route has increased by 2.6% to $8,444/day. The rate of the Black Sea to Far East route has risen by 3.3% to $8,667/day. In addition, the rate of the Europe-Far East route has fallen by 1.4% to $9,913/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has increased by 1.3% to $7,509/day. In the time charter market, the supramax time charter market was more active last week. Two supramax vessels were chartered for period deals last week. In comparison, the previous week saw no supramax vessels chartered for period deal. Most recently, a 56,000 dwt vessel was chartered for 3 to 65months for $10,000/day.