Weekly Dry Bulk Observation
The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,428 points, an increase of 236 points (20%) from a week ago. Capesize rates found very significant support again 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 remains quite encouraging for capesize rate prospects. In total, 128 dry bulk vessels were chartered in the spot market last week. The previous week saw 100 vessels chartered. 13 dry bulk vessels were also chartered for period deals last week, which was 7 more than were chartered during the previous week.
Capesize vessels
Capesize rates ended last week averaging $24,413/day, which was an increase of $8,302 (52%) 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 was also firm last week, and has continued to significantly contribute to overall capesize rates coming finding great support. 18 spot Australian iron ore cargoes surfaced in the market last week, which was 2 less than the previous week but still a large amount. In total, 9 spot Brazilian iron ore cargoes surfaced last week, which was 2 less than the previous week but a firm amount. The rate of the Australia-Qingdao route has rise by 8.7% to 9.786/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has risen by 29.7% to $21,732/day. The rate of the Tubarao-Qingdao route has risen by 25.6% to $25.715/ton. The rate of the Tubarao-Rotterdam route has increased by 22.4% to $12.650ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has risen by 53.6% to $24,150/day. In the time charter market, the capesize time charter market was slightly more active again last week. Two capesize vessels were chartered for a period deal last week. This is one more than was chartered during the previous week. Most recently, a 181,000 dwt vessel was chartered for 3 to 4 months for $20,000/day.
Panamax Vessels
Panamax rates ended last week averaging $9,883/day, which was an increase of $912 (10%) from a week ago. Panamax rates increased again last week on the strength of a large amount of coal and grain cargoes continuing to surface in the market. The rate of the Atlantic to Far East route has increased by 3.7% from a week ago to $16,958/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has increased by 12.6% from a week ago to $9,869/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has increased by 15.6% to $11,784/day. The rate of the Far East to Europe route has risen to $919/day. In the time charter market, the panamax time charter market was more active last week as eight panamax vessels were chartered for period deals. This is two more than were chartered during the previous week. Most recently, an 79,000 dwt vessel was chartered for 4 to 6 months for $10,500/day.
Supramax Vessels
Supramax rates ended last week averaging $9,326/day, which was a decrease of $86 (-1%) from a week ago. Supramax rates have fallen but still remain at a healthy level and is well above basic operating costs. The rate of the US Gulf-Europe route has risen by 2.1% to $12,944/day. The rate of the Black Sea to Far East route has decreased very slightly to $12,806/day. The rate of the Europe-Far East route has decreased by 9.5% to $13,964/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has decreased by 1% to $8,074/day. In the time charter market, the supramax time charter market was more active last week as three supramax vessels were chartered for period deals. In comparison, this previous week did not see any supramax vessels chartered for period deals. Most recently, a 55,000 dwt vessel was chartered for 4 to 6 months for $10,750/day.