November 3, 2014 - November 7, 2014

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,437 points, an increase of 9 points (1%) from a week ago. Capesize rates found greater support last week, as demand for capesize vessels is strong while few capesize vessels are available in the spot market to be chartered (this is great for rate prospects). In particular, very few capesize vessels are available in the Atlantic basin and capesize rates there are expected to jump by a very large amount this week. The prospects for capesize rates are very encouraging, and the capesize market is doing better than the rest of the dry bulk market. In total, 105 dry bulk vessels were chartered in the spot market last week. The previous week saw 128 vessels chartered. 8 dry bulk vessels were also chartered for period deals last week, which was 5 less than chartered during the previous week.

Capesize vessels

Capesize rates ended last week averaging $26,105/day, which was an increase of $1,692 (7%) 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 contribute to overall capesize rates finding support. 15 spot Australian iron ore cargoes surfaced in the market last week, which was 3 less than the previous week but still a very large amount. In total, 5 spot Brazilian iron ore cargoes surfaced last week, which was 4 less than the previous week but a moderate amount. The rate of the Australia-Qingdao route has fallen by 1.1% to 9.682/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has increased slightly to $21,950/day. The rate of the Tubarao-Qingdao route has fallen by 4.7% to $24.495/ton. The rate of the Tubarao-Rotterdam route has increased by 4.4% to $13.20/6ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has risen by 18.3% to $28,575/day. In the time charter market, the capesize time charter market was less active last week. One capesize vessels was chartered for a period deal last week. This is one less than was chartered during the previous week. Most recently, a 178,000 dwt vessel was chartered for 4 to 6 months for $26,000/day.

Panamax Vessels

Panamax rates ended last week averaging $9,480/day, which was a decrease of $403 (4%) from a week ago. Panamax rates fell primarily due to less grain cargoes surfacing in the market. The rate of the Atlantic to Far East route has fallen by 3.4% from a week ago to $16,373/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has declined by 4.2% from a week ago to $9,454/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has decreased by 4.6% to $11,244/day. The rate of the Far East to Europe route has fallen to $850/day. In the time charter market, the panamax time charter market was less active last week as five panamax vessels were chartered for period deals. This is three less than were chartered during the previous week. Most recently, an 79,000 dwt vessel was chartered for 4 to 6 months for $9,350/day.

Supramax Vessels

Supramax rates ended last week averaging $9,209/day, which was a decrease of $117 (1%) from a week ago. Supramax rates have fallen again but still remain at a healthy level well above basic operating costs. The rate of the US Gulf-Europe route has fallen by 5.2% to $12,267/day. The rate of the Black Sea to Far East route has decreased by 2.4% to $12,500/day. The rate of the Europe-Far East route has declined by 4.3% to $13,357/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has increased by 2% to $8,236/day. In the time charter market, the supramax time charter market was less active last week as two supramax vessels were chartered for period deals. In comparison, this previous week saw three supramax vessels chartered for period deals. Most recently, a 52,000 dwt vessel was chartered for 3 to 5 months for $10,150/day.