11.17-11.21International Dry Bulk Market Weekly Comment

2014-11-24

Weekly Dry Bulk Observation

The international dry bulk market ended last week with the Baltic Dry Index (BDI) at 1,324 points, an increase of 68 points (5%) from a week ago. Capesize rates increased by the largest amount last week, as capesize availability remains tight which is positive for rates. Overall, dry bulk chartering activity was firm again last week. In total, 113 dry bulk vessels were chartered in the spot market last week. The previous week saw 117 vessels chartered. 4 dry bulk vessels were also chartered for period deals last week, which was 6 less than chartered during the previous week.

Capesize vessels

Capesize rates ended last week averaging $22,525/day, which was an increase of $1,865 (9%) from a week ago. Spot Australian iron ore cargo volume was firm again last week, with all of the major miners again very active in the market. Brazilian iron ore cargo volume was considerably lower however. 17 spot Australian iron ore cargoes surfaced in the market last week, which was 5 less than the previous week but still a very strong amount. However, only 5 spot Brazilian iron ore cargoes surfaced last week, which was 10 less than the prior week. The rate of the Australia-Qingdao route has increased very slightly to $8.491/ton. The daily cost to charter a capesize vessel for a Pacific round-trip voyage has risen by 2.7% to $17,459/day. The rate of the Tubarao-Qingdao route has fallen by 3% to $19.820/ton. The rate of the Tubarao-Rotterdam route has increased by 3.8% to $12.172/ton. The daily cost to charter a capesize vessel for an Atlantic round-trip voyage has risen by 29.9% to $28,250/day. In the time charter market, the capesize time charter market was not at all active last week. No capesize vessels were chartered for period deals last week. The previous week saw two capesize vessels chartered for period deals.

Panamax Vessels

Panamax rates ended last week averaging $8,443/day, which was a decrease of $275 (3%) from a week ago. Panamax rates fell again primarily due to only a small amount of grain cargoes surfacing in the market. Coal cargo volume increased last week, though, which has been encouraging. The rate of the Atlantic to Far East route has fallen by 1.7% to $15,158/day. The daily cost to charter a panamax vessel for an Atlantic round-trip voyage has fallen by 2% to $8,492/day. The daily cost to charter a panamax vessel for a Pacific round-trip voyage has decreased by 6.8% to $9,488/day. The rate of the Far East to Europe route has increased slightly to $632/day. In the time charter market, the panamax time charter market was less active last week as two panamax vessels were chartered for period deals. This is five less than were chartered during the previous week. Most recently, a 75,000 dwt vessel was chartered for 4 to 6 months for $9,500/day.

Supramax Vessels

Supramax rates ended last week averaging $9,848/day, which was an increase of $699 (8%) from a week ago. Supramax rates have increased due to strong coal demand and also on the strength of a large rise in assorted US Gulf cargoes surfacing in the market. The rate of the US Gulf-Europe route has risen by 35.6% to $15,967/day. The rate of the Black Sea to Far East route has increased very slightly to $12,356/day. The rate of the Europe-Far East route has risen slightly to $13,407/day. The cost to charter a supramax vessel for an Asia-NOPAC or Australian round-trip voyage has increased by 4.8% to $8,729/day. In the time charter market, the supramax time charter market was more active last week as two supramax vessels were chartered for period deals. In comparison, this previous week saw one supramax vessel chartered for a period deal. Most recently, a 55,000 dwt vessel was chartered for 2 to 4 months for $9,000/day.

Source from : CNSS

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