August 4, 2014 - August 8, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 777 points, an increase of 26 points (3%) from a week ago. Overall dry bulk rates found support last week, with supramax rates continuing to find significant support. In total, 101 dry bulk vessels were chartered in the spot market last week. This is 4 more than were chartered during the previous week. 11 dry bulk vessels were also chartered for period deals last week, which was the same amount chartered during the previous week.

Capesize vessels

Capesize rates ended last week averaging $8,504/day, which was a decrease of just $18 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. 23 spot Australian iron ore cargoes surfaced in the market last week, which was 3 more than the previous week. A small rise in Brazilian iron ore cargoes also surfaced. In total, 6 spot Brazilian iron ore cargoes surfaced last week, which was 1 more than surfaced during the previous week. The rate of the Australia-Qingdao route has fallen by 1.7% to $7.605/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has decreased by 2.5% to $8,684/day. The rate of the Tubarao-Qingdao route has also remained basically flat and has increased very slightly to $18.705/ton. The rate of the Tubarao-Rotterdam route has also fallen, however, by 2.8% to $7.728/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has increased, however, by 6.6% to $5,005/day. In the time charter market, the capesize time charter market was less active last week. Only one capesize vessel was chartered for a period deal last week. In comparison, the previous week saw two capesize vessels chartered for period deals. Most recently, a 182,000 dwt vessel was chartered for 1 year for $19,000/day.

Panamax Vessels

Panamax rates ended last week averaging $4,963/day, which was an increase of $104 (2%) from a week ago. Panamax rates have been able to increase, although remaining low, as a firm amount of coal and grain cargoes have continued to surface in the spot market. The rate of the Atlantic to Far East route has increased by 5.1% from a week ago to $11,904/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has risen by 3.1% from a week ago to $5,038/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has fallen by 8.67% from a week ago to $3,025/day. The rate of the Far East to Europe route has decreased to negative $117/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 the same amount that were chartered during the previous week. Most recently, an 82,000 dwt vessel was chartered for 4 to 6 months for $8,250/day.

Supramax Vessels

Supramax rates ended last week averaging $8,406/day, which was an increase of $798 (10%) from a week ago. Supramax rates are finding significant support primarily due to a large increase in Black Sea grain exports. Supramax rates are also increasing in both the Atlantic and Pacific basin. The rate of the US Gulf-Europe route has increased by 10.9% to $9,783/day. The rate of the Black Sea to Far East route has risen by 30% to $12,731/day. In addition, the rate of the Europe-Far East route has risen by 12.8% to 11,679/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has increased by 2.7% to $8,207/day. In the time charter market, the supramax time charter market was a bit active again last week. Three supramax vessels were chartered for period deals last week. In comparison, the previous week saw two supramax vessels chartered for period deals. Most recently, a 55,000 dwt vessel was chartered for 2 to 4 months for $12,500/day.