October 13, 2014 - October 17, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 944 points, a decrease of 19 points (2%) from a week ago. Panamax rates found support last week,but the rest of the dry bulk market saw rates come under pressure even as overall chartering activity rebounded. In total, 115 dry bulk vessels were chartered in the spot market last week. The previous week saw 87 vessels chartered. 4 dry bulk vessels were also chartered for period deals last week, which was 1 less than were chartered during the previous week.

Capesize vessels

Capesize rates ended last week averaging $8,308/day, which was a decrease of $794 (9%) from a week ago. Spot Australian iron ore cargo volume was firm last week, with all of the major miners very active in the market. Brazilian iron ore cargo volume fell, however, and greatly contributed to overall capesize rates coming under greater pressure. 24 spot Australian iron ore cargoes surfaced in the market last week, which was 5 more than the previous week. In total, 3 spot Brazilian iron ore cargoes surfaced last week, which was 4 less than the previous week and a very low amount. The rate of the Australia-Qingdao route has fallen by 2.5% to $7.372/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has decreased by 10% to $8,575/day. The rate of the Tubarao-Qingdao route has declined by 2.1% to $17.083/ton. The rate of the Tubarao-Rotterdam route has decreased by 2.6% to $6.613/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has decreased by 6.3% to $5,833/day. In the time charter market, the capesize time charter market was not very active again last week. One capesize vessel was chartered for a period deal last week. This is the same amount that was chartered during the previous week. Most recently, a 177,000 dwt vessel was chartered for 11 to 14 months for $14,100/day.

Panamax Vessels

Panamax rates ended last week averaging $7,735/day, which was an increase of $811 (12%) from a week ago. Panamax rates increased last week on the strength of a large amount of coal and grain cargoes surfacing in the market. The rate of the Atlantic to Far East route has risen by 2.9% from a week ago to $15,073/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has increased by 24.1% from a week ago to $6,729/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has increased by 17% to $8,731/day. The rate of the Far East to Europe route has risen to $406/day. In the time charter market, the panamax time charter market was not very active last week as only one panamax vessel was chartered for a period deal. This is one less than was chartered during the previous week. Most recently, an 82,000 dwt vessel was chartered for 2 to 4 months for $12,250/day.

Supramax Vessels

Supramax rates ended last week averaging $9,651/day, which was a decrease of $496 (5%) from a week ago. Supramax rates have decreased but still remain at a healthy level and are the highest rate of all the dry bulk vessel classes. The rate of the US Gulf-Europe route has fallen by 4.3% to $12,644/day. The rate of the Black Sea to Far East route has fallen by 4.6% to $12,981/day. The rate of the Europe-Far East route has declined by 7.3% to $16,050/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has decreased by 5.3% to $8,464/ day. In the time charter market, the supramax time charter market was not very active last week. Two supramax vessels were chartered for period deals last week. This is the same amount that was chartered during the previous week. Most recently, a 55,000 dwt vessel was chartered for 3 to 5 months for $14,500/day.