August 11, 2014 - August 15, 2014
Weekly Dry Bulk Observation
The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,015 points, an increase of 238 points (31%) from a week ago. Rates for all four dry bulk vessel classes found support last week, with capesize finding a very significant amount support. In total, 126 dry bulk vessels were chartered in the spot market last week. This is 25 more than were chartered during the previous week. 6 dry bulk vessels were also chartered for period deals last week, which was 5 less than were chartered during the previous week.
Capesize vessels
Capesize rates ended last week averaging $14,391/day, which was an increase of $5,887 (69%) 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. 18 spot Australian iron ore cargoes surfaced in the market last week, which was 5 less than the previous week but still a very firm amount. A moderate rise in Brazilian iron ore cargoes also surfaced. In total, 10 spot Brazilian iron ore cargoes surfaced last week, which was 4 more than surfaced during the previous week. The rate of the Australia-Qingdao route has increased by 17.7% to $8.950/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has risen by 78.2% to $15,472/day. The rate of the Tubarao-Qingdao route has increased by 24.4% to $23.263/ton. The rate of the Tubarao-Rotterdam route has increased by 27.8% to $9.875/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has increased by 96% to $9,806/day. In the time charter market, the capesize time charter market was not active last week. No capesize vessels were chartered for a period deal last week. In comparison, the previous week saw one capesize vessel chartered for a period deal.
Panamax Vessels
Panamax rates ended last week averaging $6,397/day, which was an increase of $1,434 (29%) from a week ago. Panamax rates have been able to increase by a very large amount on the strength of strong demand for coal and grain cargoes. The rate of the Atlantic to Far East route has increased by 18.5% from a week ago to $14,109/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has risen by 31.1% from a week ago to $6,605/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has increased by 60.4% from a week ago to $4,852/day. The rate of the Far East to Europe route has now increased to $20/day. In the time charter market, the panamax time charter market was active again last week as five panamax vessels were chartered for period deals. This is 2 less than were chartered during the previous week. Most recently, an 82,000 dwt vessel was chartered for 3 to 5 months for $10,500/day.
Supramax Vessels
Supramax rates ended last week averaging $9,170/day, which was an increase of $764 (9%) from a week ago. Supramax rates are finding greater support primarily due to a large increase in Black Sea grain exports. Supramax rates also continue to rise in both the Atlantic and Pacific basins. The rate of the US Gulf-Europe route has risen by 14.9% to $11,244/day. The rate of the Black Sea to Far East route has increased by 12.3% to $14,294/day. In addition, the rate of the Europe-Far East route has risen by 8.1% to 12,621/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has risen by 4.3% to $8,557/day. In the time charter market, the supramax time charter market was less last week. One supramax vessels were chartered for period deals last week. In comparison, the previous week saw three supramax vessels chartered for period deals. Most recently, a 57,000 dwt vessel was chartered for 3 to 5 months for $11,000/day.