September 1, 2014 - September 5, 2014
Weekly Dry Bulk Observation
The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,155 points, an increase of 8 points (1%) from a week ago. Rates for the three smaller dry bulk vessel classes found support throughout last week. Capesize rates found support on Thursday and Friday. In total, 112 dry bulk vessels were chartered in the spot market last week. This is 13 more than were chartered during the previous week. 9 dry bulk vessels were also chartered for period deals last week, which was 3 more than were chartered during the previous week.
Capesize vessels
Capesize rates ended last week averaging $16,116/day, which was a decrease of $761 (5%) from a week ago. Spot Australian iron ore cargo volume was very strong last week, with all of the major miners very active in the market. 29 spot Australian iron ore cargoes surfaced in the market last week, which was 18 more than the previous week. A larger amount of Brazilian iron ore cargoes also surfaced and capesize vessel availability has remained tight and capesize rates are poised to find much more support. In total, 8 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 decreased by 4.9% to $8.609/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has declined by 8.8% to $15,682/day. The rate of the Tubarao-Qingdao route has fallen by 4.3% to $23.400/ton. The rate of the Tubarao-Rotterdam route has declined by 39.6% to $9.806/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has decreased by 4.9% to $10,960/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 one capesize vessel chartered for a period deal. Most recently, a 174,000 dwt vessel was chartered for 4 to 6 months for $23,000/day.
Panamax Vessels
Panamax rates ended last week averaging $7,431/day, which was an increase of $490 (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 3.5% from a week ago to $15,819/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has increased by 0.3% from a week ago to $7,113/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has increased by 24.4% from a week ago and now stands at $6,559/day. The rate of the Far East to Europe route has increased to $231/day. In the time charter market, the panamax time charter market was much more active last week as six panamax vessels were chartered for period deals. This is five more than were chartered during the previous week. Most recently, a 77,000 dwt vessel was chartered for 4 to 6 months for $10,750/day.
Supramax Vessels
Supramax rates ended last week averaging $10,425/day, which was an increase of $285 (5%) from a week ago. Supramax rates, like panamax rates, have found even greater support due to a large amount of coal and grain cargoes coming to the market. The rate of the US Gulf-Europe route has increased by 5.4% to $14,258/day. The rate of the Black Sea to Far East route has fallen slightly to $15,063/day. In addition, the rate of the Europe-Far East route has risen slightly to 13,621/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has risen by 5.5% to $9,933/day. In the time charter market, the supramax time charter market was less active last week. One supramax vessel was chartered for a period deal 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 $10,500/day.