November 10, 2014 - November 14, 2014
Weekly Dry Bulk Observation
The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,256 points, a decrease of 181 points (13%) from a week ago. Capesize rates decreased by the largest amount last week, as capesize rates have once again become volatile. Very few capesize vessels remain available in the Atlantic basin, however, and capesize rates are expected to rebound again this week. Overall, dry bulk chartering activity was good last week. In total, 117 dry bulk vessels were chartered in the spot market last week. The previous week saw 105 vessels chartered. 10 dry bulk vessels were also chartered for period deals last week, which was 2 more than chartered during the previous week.
Capesize vessels
Capesize rates ended last week averaging $20,660/day, which was a decrease of $5,445 (21%) 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 strong last week. 22 spot Australian iron ore cargoes surfaced in the market last week, which was 7 more than the previous week. In total, 15 spot Brazilian iron ore cargoes surfaced last week, which was 10 more than the previous week. The rate of the Australia-Qingdao route has fallen by 12.4% to 8.486/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has declined by 22.5% to $17,005/day. The rate of the Tubarao-Qingdao route has fallen by 16.6% to $20.435/ton. The rate of the Tubarao-Rotterdam route has fallen by 11.2% to $11.722/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has fallen by 23.9% to $21,745/day. In the time charter market, the capesize time charter market was more active last week. Two capesize vessels were chartered for period deals last week. This is one more than was chartered during the previous week. Most recently, a 180,000 dwt vessel was chartered for 4 to 6 months for $24,250/day.
Panamax Vessels
Panamax rates ended last week averaging $8,718/day, which was a decrease of $762 (8%) from a week ago. Panamax rates fell again primarily due to only a small amount of grain cargoes surfacing in the market. The rate of the Atlantic to Far East route has fallen by 5.9% to $15,413/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has fallen by 9.1% to $8,663/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has declined by 9.5% to $10,177/day. The rate of the Far East to Europe route has fallen to $617/day. In the time charter market, the panamax time charter market was more active last week as seven panamax vessels were chartered for period deals. This is two more than were chartered during the previous week. Most recently, a 83,000 dwt vessel was chartered for 4 to 6 months for $10,250/day.
Supramax Vessels
Supramax rates ended last week averaging $9,149/day, which was a decrease of $60 (1%) from a week ago. Supramax rates have fallen again by only a very small amount and still remain at a healthy level that is well above basic operating costs. The rate of the US Gulf-Europe route has fallen by 4% to $11,772/day. The rate of the Black Sea to Far East route has decreased by 1.7% to $12,288/day. The rate of the Europe-Far East route has declined slightly to $13,307/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has increased by 1.1% to $8,329/day. In the time charter market, the supramax time charter market was less active last week as only one supramax vessel was chartered for a period deal. In comparison, this previous week saw two supramax vessels chartered for period deals. Most recently, a 56,000 dwt vessel was chartered for 3 to 5 months for $9,000/day.