11.10-11.12 Hot Issues in the Dry Bulk Market

2014-11-13

Firm Level of Dry Bulk Spot Chartering Activity

Through the first three days of this week, the Baltic Dry Index has fallen by 110 points to 1,327 points. This represents a decrease of 8% from the end of last week. Capesize and panamax rates have come under the most amount of pressure, although demand for capesize and panamax ships has been surprisingly strong. Global spot chartering activity has increased this week. A total of 61 dry bulk cargoes have been chartered in the spot market so far this week. In comparison, 58 cargoes were chartered during the first three days of last week.

Overall Dry Bulk Fleet Growth Moderate in October

Recently released data shows that dry bulk fleet growth remained moderate in October. Approximately 61 dry bulk vessels were delivered in October, down by 1 vessel from the 62 dry bulk vessels that were delivered in September. October saw the delivery of 17 handysize vessels, 17 handymax vessels, 15 panamax vessels, and 12 capesize vessels. In comparison, September saw the delivery of 17 handysize vessels, 17 handymax vessels, 18 panamax vessels, and 9 capesize vessels.

Approximately 31 dry bulk vessels were demolished in October, down slightly from the 33 dry bulk vessels demolished in September. October saw the demolition of 14 handysize vessels, 6 handymax vessels, 9 panamax vessels, and 2 capesize vessels. In comparison, September saw the demolition of 19 handysize vessels, 2 handymax vessels, 9 panamax vessels, and 3 capesize vessels. Taking October's vessel demolition figures into account, the dry bulk fleet grew by a net addition of 30 vessels in October.

Panamax Fleet Growth Remains Relatively Low

Panamax fleet growth has continued to pale in comparison to the much higher panamax fleet growth seen earlier this year. While the first seven months of this year saw the panamax fleet grow each month by a net addition of 14.4 vessels, the last three month have seen the panamax fleet grow each month by a net addition of only 5.3 vessels. The drop in panamax fleet growth during the last several months allowed panamax rates to find support in late Q3 and recently in Q4.

Source from : CNSS

HEADLINES