July 28, 2014 - August 1, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 751 points, an increase of 12 points (2%) from a week ago. Rates for most of the vessel classes remained relatively flat last week, but supramax rates were able to find significant support which is encouraging. In total, 97 dry bulk vessels were chartered in the spot market last week. This is 23 less than were chartered during the previous week. 11 dry bulk vessels were also chartered for period deals last week, which was 1 more than the previous week.

Capesize vessels

Capesize rates ended last week averaging $8,522/day, which was a decrease of just $99 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. 20 spot Australian iron ore cargoes surfaced in the market last week, which was 8 less than the previous week but still a very firm amount. Less Brazilian iron ore cargoes surfaced however. In total, 5 spot Brazilian iron ore cargoes surfaced last week, which was 1 less than surfaced during the previous week. The rate of the Australia-Qingdao route has fallen by 1.2% to $7.740/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has decreased by just $40 to $8,910/day. The rate of the Tubarao-Qingdao route has also remained basically flat and has risne very slightly to $18.614/ton. The rate of the Tubarao-Rotterdam route has also increased very slightly and now stands at $7.950/ton. However, the daily cost to charter a capesize vessel for an Atlantic round-trip voyage has declined by 7.8% from a week ago to $4,694/day. In the time charter market, the capesize time charter market more active last week. Two capesize vessels were chartered for period deals last week. In comparison, the previous week did not see any capesize vessel chartered for period deals. Most recently, a 180,000 dwt vessel was chartered for 11 to 14 months for $18,750/day.

Panamax Vessels

Panamax rates ended last week averaging $4,859/day, which was an increase of $23 from a week ago. Panamax rates have been able to remain steady, although still low, as a firm amount of coal and grain cargoes have continued to surface in the market. The rate of the Atlantic to Far East route has increased by 4.4% from a week ago to $11,325/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has risen by 2.4% from a week ago to $4,885/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has fallen by 11.7% from a week ago to $3,310/day. The rate of the Far East to Europe route has decreased to negative $83/day. In the time charter market, the panamax time charter market was quite active again last week as seven panamax vessels were chartered for period deals. This is one less than was 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 $7,608/day, which was an increase of $511 (7%) from a week ago. Supramax supply and demand balance is leveling out to the point where supramax rates are able to find significant support when a large amount of cargoes come to the market. The rate of the US Gulf-Europe route has increased by 4.5% to $8,822/day. The rate of the Black Sea to Far East route has risen by 12% to $9,794/day. In addition, the rate of the Europe-Far East route has risen by 4.5% to 10,356/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has increased by 6.9% to $8,025/day. In the time charter market, the supramax time charter market was a bit active again last week. Two supramax vessels were chartered for period deals last week. In comparison, the previous week also saw two supramax vessels chartered for period deals. Most recently, a 57,000 dwt vessel was chartered for 3 to 5 months for $10,000/day.