October 20, 2014 - October 24, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,192 points, an increase of 248 points (26%) from a week ago. Capesize rates found very significant support last week, as demand for capesize vessels is very strong while few capesize vessels are available in the spot market to be chartered. This is very encouraging for capesize rate prospects. In total, 100 dry bulk vessels were chartered in the spot market last week. The previous week saw 115 vessels chartered. 7 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 $16,111/day, which was a decrease of $7,803 (94%) from a week ago. Spot Australian iron ore cargo volume was firm last week, with all of the major miners again very active in the market. Brazilian iron ore cargo volume also increased by a large amount, and significantly contributed to overall capesize rates coming finding great support. 20 spot Australian iron ore cargoes surfaced in the market last week, which was 4 less than the previous week but still a very large amount. In total, 11 spot Brazilian iron ore cargoes surfaced last week, which was 8 more than the previous week. The rate of the Australia-Qingdao route has increased by 22.1% to 9.000/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has risen by 95.3% to $16,750/day. The rate of the Tubarao-Qingdao route has risen by 19.8% to $20.470/ton. The rate of the Tubarao-Rotterdam route has increased by 56.3% to $10.339/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has risen by 170% to $15,725/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 179,000 dwt vessel was chartered for 4 to 7 months for $17,500/day.

Panamax Vessels

Panamax rates ended last week averaging $8,971/day, which was an increase of $1,236 (16%) from a week ago. Panamax rates increased again 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 increased by 8.5% from a week ago to $16,348/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has increased by 30.2% from a week ago to $8,763/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has increased by 16.7% to $10,191/day. The rate of the Far East to Europe route has risen to $583/day. In the time charter market, the panamax time charter market was much more active last week as sixpanamax vessels were chartered for period deals. This is five more than were chartered during the previous week. Most recently, an 81,000 dwt vessel was chartered for 11 to 13 months for $10,000/day.

Supramax Vessels

Supramax rates ended last week averaging $9,412/day, which was a decrease of $239 (2%) from a week ago. Supramax rates have decreased but still remain at a healthy level and well above basic operating costs. The rate of the US Gulf-Europe route has risen by very small amount to $12,683/day. The rate of the Black Sea to Far East route has decreased very slightly to $12,819/day. The rate of the Europe-Far East route has decreased by 3.9% to $15,429/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has declined by 3.7% to $8,150/day. In the time charter market, the supramax time charter market was not at all active last week. No supramax vessels were chartered for period deals last week. In comparison, this previous week saw two supramax vessels chartered for period deals.