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Dearth of cargo keeps dry bulk market floundering

THE decline in the dry bulk market shows no sign of ending, with the Baltic Dry Index dropping 287 points on Tuesday to reach 3,217, its lowest point in over two years. The bottom has fallen out of the market and with very little cargo on offer charterers have a long list of available vessels to choose from. Panamax rates have continued to take a hammering, with the Baltic Panamax Index falling again dramatically by 575 points to 2,729. Average panamax time charter rates last week fell below those for supramaxes, but has continued to drop. The average panamax time charter rate of $19,294 is $597 below that for a handysize. All panamax routes dropped considerably, with fronthaul route rate falling the most to $24,400 per day, down $5,050, and the transatlantic route falling $3,975 to close at the lowest amount of $15,063 per day.
Cargill fixed two panamaxes on the transatlantic route, including the 76,598 dwt 2002-built Mishima with delivery in Sete and redelivery in the Mediterranean via Brazil for $19,750 per day, well over the day’s route rate. In the cape market, with Chinese steelmakers in dispute with Indian iron ore producers, as well as Vale in Brazil, there is very little iron ore coming out of both of these countries, taking a huge chunk of cargo out of the market. Capesize rates continued to fall, but the effect was varied. The fronthaul route rate fell $5,654 to close at $67,346, while the Pacific round voyage rate fell just $593 to $32,215. Having paid 100,000 per day for capesizes with worldwide redelivery, Classic Maritime fixed the 174,332 dwt 2006-built Bulk Hong Kong for delivery in China with 10-12 months trading with redelivery worldwide for just $55,000 per day. Rates for capesize vessels with worldwide redelivery have not dropped since last week. BHP Billiton was prominent in spot ore fixtures, chartering two 160,000dwt re-let capesize vessels from Port Hedland to Qingdao between 21-30 October for $11.75 per tonne. Despite reports last week that modern supramaxes were being fixed for just over their operating costs of $7,000-$8,000 per day, the average time charter rate for supramax vessels fell by just $1,249 to $28,532 per day. Some lower rates have appeared in fixture lists. Jaldi has chartered the 55,418 dwt 2007-built Tai Honesty for a spot trip with delivery in Chennai and redelivery in China for just $11,000 per day.
The Baltic Handysize Index fell the least of all the indices, dropping 85 points to 1,361, with an equivalent average time charter rate of $19,891 per day.





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