August 18, 2014 - August 22, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,088 points, an increase of 73 points (7%) from a week ago. Rates for all four dry bulk vessel classes found support last week, with capesize finding the largest amount support. In total, 90 dry bulk vessels were chartered in the spot market last week. This is 36 less than were chartered during the previous week. 8 dry bulk vessels were also chartered for period deals last week, which was 2 more than were chartered during the previous week.

Capesize vessels

Capesize rates ended last week averaging $16,031/day, which was an increase of $1,640 (11%) 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. 24 spot Australian iron ore cargoes surfaced in the market last week, which was 6 more than the previous week. A moderate amount of Brazilian iron ore cargoes also surfaced. In total, 8 spot Brazilian iron ore cargoes surfaced last week, which was 2 less than surfaced during the previous week but still a very firm amount. The rate of the Australia-Qingdao route has increased by 2.8% to $9.205/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has risen by 10.6% to $17,118/day. The rate of the Tubarao-Qingdao route has risen by 2.8% to $23.910/ton. The rate of the Tubarao-Rotterdam route has increased by 5.8% to $10.450/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has declined by 1.5% to $9,355/day. In the time charter market, the capesize time charter market was more active last week. Two capesize vessels were chartered for period deals last week. In comparison, the previous week saw no capesize vessels chartered for a period deal. Most recently, a 175,000 dwt vessel was chartered for 12 months for $20,500/day and a $1.4 million ballast bonus.

Panamax Vessels

Panamax rates ended last week averaging $6,467/day, which was an increase of $70 (1%) from a week ago. Panamax rates have been able to find more support as a large amount of coal and grain cargoes continue to surface in the market. The rate of the Atlantic to Far East route has risen by 2.5% from a week ago to $14,462/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has decreased by 21.1% from a week ago to $6,463/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has stayed basically flat from a week ago and now stands at $4,850/day. The rate of the Far East to Europe route has increased to $20/day. In the time charter market, the panamax time charter market was much less active last week as only one panamax vessel was chartered for a period deal. This is 4 less than were chartered during the previous week. Most recently, an 82,000 dwt vessel was chartered for 12 to 16 months for $12,000/day.

Supramax Vessels

Supramax rates ended last week averaging $9,797/day, which was an increase of $627 (7%) from a week ago. Supramax rates are finding more support primarily due to a large volume of 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 11.1% to $12,494/day. The rate of the Black Sea to Far East route has increased by 3.3% to $14,763/day. In addition, the rate of the Europe-Far East route has risen by 5.7% to 13,314/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has risen by 6.6% to $9,121/day. In the time charter market, the supramax time charter market was more active last week. Five supramax vessels were chartered for period deals last week. In comparison, the previous week saw only one supramax vessel chartered for a period deal. Most recently, a 56,000 dwt vessel was chartered for 2 to 4 months for $8,000/day.