9.8-9.12 International Dry Bulk Market Weekly Comment

2014-09-14

September 8, 2014 - September 12, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,181 points, an increase of 29 points (3%) from a week ago. Capesize, supramax, and handysize rates all found support last week. In total, 112 dry bulk vessels were chartered in the spot market last week. This is the same firm amount that were chartered during the previous week. 15 dry bulk vessels were also chartered for period deals last week, which was 6 more than were chartered during the previous week.

Capesize vessels

Capesize rates ended last week averaging $17,470/day, which was an increase of $1,354 (8%) from a week ago. Spot Australian iron ore cargo volume was strong again last week, with all of the major miners very active in the market. 20 spot Australian iron ore cargoes surfaced in the market last week, which was 9 less than the previous week but still a very strong amount. A smaller amount of Brazilian iron ore cargoes however. 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 risen by 1.3% to $8.723/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has risen by 2.6% to $16,095/day. The rate of the Tubarao-Qingdao route has fallen by 2.3% to $22.865/ton. The rate of the Tubarao-Rotterdam route has risen by 1.7% to $9.972/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has increased by 30.9% to $14,350/day. In the time charter market, the capesize time charter market was only slightly active last week. Two capesize vessels were chartered for period deals last week, the same amount as the previous week. Most recently, a 169,000 dwt vessel was chartered for 1 year months at an index-linked rate.

Panamax Vessels

Panamax rates ended last week averaging $7,013/day, which was a decrease of $418 (-6%) from a week ago. Panamax rates fell last week primarily due to a slowdown in panamax Atlantic cargoes. The rate of the Atlantic to Far East route has fallen by 6.2% from a week ago to $14,835/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has decreased by 27.1% from a week ago to $5,188/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has increased by 17.2% from a week ago and now stands at $7,688/day. The rate of the Far East to Europe route has increased to $342/day. In the time charter market, the panamax time charter market was more active last week as seven panamax vessels were chartered for period deals. This is one more than was chartered during the previous week. Most recently, a 75,000 dwt vessel was chartered for 13 to 17 months for $9,250/day.

Supramax Vessels

Supramax rates ended last week averaging $10,519/day, which was an increase of $94 (1%) from a week ago. Supramax rates have found more support due to a large amount of vessels being chartered to haul imported thermal coal cargoes to Indian buyers. The rate of the US Gulf-Europe route has increased by 9.5% to $15,617/day. The rate of the Black Sea to Far East route has fallen decreased by 2.9% to $14,631/day. In addition, the rate of the Europe-Far East route has risen slightly to 13,471/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has fallen slightly to $9,918/day. In the time charter market, the supramax time charter market was more active last week. Six supramax vessels was chartered for a period deal 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 4 to 6 months for $13,500/day.

Source from : CNSS

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