8.25-8.29International Dry Bulk Market Weekly Comment

2014-09-01

August 25, 2014 - August 29, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,147 points, an increase of 59 points (5%) from a week ago. Rates for all four dry bulk vessel classes found support last week, with panamax and handysize rates finding the largest amount of support. In total, 99 dry bulk vessels were chartered in the spot market last week. This is 9 more than were chartered during the previous week. 6 dry bulk vessels were also chartered for period deals last week, which was 2 less than were chartered during the previous week.

Capesize vessels

Capesize rates ended last week averaging $16,877/day, which was an increase of $846 (5%) from a week ago. Spot Australian iron ore cargo volume was weaker last week, with only Rio Tinto and BHP active in the market. 11 spot Australian iron ore cargoes surfaced in the market last week, which was 13 less than the previous week. A smaller amount of Brazilian iron ore cargoes also surfaced but capesize vessel availability has remained tight and capesize rates have found more support. In total, 4 spot Brazilian iron ore cargoes surfaced last week, which was 4 less than surfaced during the previous week. The rate of the Australia-Qingdao route has decreased by 1.7% to $9.050/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has risen by 0.4% to $17,191/day. The rate of the Tubarao-Qingdao route has risen by 2.3% to $24.450/ton. The rate of the Tubarao-Rotterdam route has increased by 3.8% to $10.844/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has increased by 23.2% to $11,525/day. In the time charter market, the capesize time charter market was less active last week. One capesize vessel was chartered for a period deal last week. In comparison, the previous week saw two capesize vessels chartered for a period deal. Most recently, a 170,000 dwt vessel was chartered for 15 to 18 months for $19,750/day.

Panamax Vessels

Panamax rates ended last week averaging $6,941/day, which was an increase of $474 (7%) from a week ago. Panamax rates have been able to find additional 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 5.6% from a week ago to $15,277/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has increased by 9.7% from a week ago to $7,092/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has increased by 8.7% from a week ago and now stands at $5,272/day. The rate of the Far East to Europe route has increased to $124/day. In the time charter market, the panamax time charter market was much not very active last week as only one panamax vessel was chartered for a period deal. This is the same low amount that was chartered during the previous week. Most recently, an 72,000 dwt vessel was chartered for 3 to 5 months for $9,000/day.

Supramax Vessels

Supramax rates ended last week averaging $10,140/day, which was an increase of $343 (4%) from a week ago. Supramax rates are finding greater support due partially to a large volume of Black Sea and US Gulf grain exports. Seaborne minor bulk cargo trade has also increased recently. The rate of the US Gulf-Europe route has increased by 8.3% to $13,533/day. The rate of the Black Sea to Far East route has increased by 2.2% to $15,081/day. In addition, the rate of the Europe-Far East route has risen by 1.9% to 13,564/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has risen by 3.2% to $9,414/day. In the time charter market, the supramax time charter market was less active last week. Three supramax vessels were chartered for period deals last week. In comparison, the previous week saw five supramax vessels chartered for period deals. Most recently, a 56,000 dwt vessel was chartered for 4 to 6 months for $8,750/day.

Source from : CNSS

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