Dry Bulk Market Commentary 13-17 May 2024

This week, coaster freight rates have finally plateaued after a sharp decline, showing some signs of recovery. Notably, on the Azov-Marmara route, freight rates for 3,000-ton wheat shipments increased from last week's $30/ton to $31-32/ton. The Rostov-Marmara route also saw an increase from $32-33/ton to $33-34/ton. Additionally, freight rates for Rostov-Mersin trips rose from $58-59/ton to the $60/ton threshold.

On the other hand, freight rates on the Novorossiysk-Marmara route remained stable for steel and wheat jobs. Steel shipments were priced at $21-22/ton, and wheat shipments at $22-23/ton. Freight rates for 5,000-ton wheat or corn shipments from Izmail to Marmara dropped to $15-16/ton.

The Baltic Dry Index (BDI) started last week at 2,129 points but closed at 1,844 points, displaying a volatile performance. The Baltic Supramax Index (BSI) similarly dropped from 1,485 points to 1,405 points, with average revenues decreasing from $16,333/day to $15,460/day. Both the Black Sea to Far East shipments and the Gulf of Mexico to Far East route reflected this downward trend.

Conversely, the Baltic Handysize Index (BHSI) further decreased from 703 points to 690 points, increasing its losses as global revenues slipped from $12,647/day to $12,423/day. Interestingly, freight rates for the Far East saw an increase.

While the markets exhibited a slow pace of sales this week, the 2016-built sister ships “Beltide” and “Belfriend” by Tsuneishi - Cebu were each sold for $28.3 million. These sales are notable, especially since they occurred before the class renewal surveys scheduled for August. Moreover, the 100% Japanese-built 2011 Kawasaki constructed “Pacific Honor” was sold for $19.5 million, and the 2009 Mitsui built “Super Bergkamp” went to Greek buyers for $15.5 million. From the Chinese-built ships, the 2012 Cosco-built Dolphin 57 type “Delta Avon” changed hands for $14.3 million, and the 2009 Jiangsu built “Cheval Blanc” was sold for $11.5 million.

These movements in freight markets and ship sales offer significant insights into the general trends and economic conditions in the sector. The coming weeks will be crucial in showing how these fluctuations will evolve.