Dry Bulk Market Commentary March 11-15, 2024

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Dry Bulk Market Commentary March 11-15, 2024

The recent downtrend in maritime and river transport freight rates has paused due to factors such as delays in the straits, waiting times in Kerch, and the lifting of ice restrictions. Specifically, freight rates on the 3,000-ton Azov-Marmara route increased from $32-33 per ton last week to $33-34 per ton. Rates for the Rostov-Marmara route went up from $34-35 per ton to $35-36 per ton, and for the Rostov-Mersin route, they ended their downward trend since the beginning of the year, moving from $60-62 per ton to $61-63 per ton.

In the conventional coaster market, freight rates for 5,000-ton Novorossiysk-Marmara steel transport remained stable at around $20-21 per ton, with wheat rates staying at $22-23 per ton. If river freight rates continue to rise, an increase in these routes might be seen. Freight offers for 5,000 tons of corn from Izmail to Marmara increased from $24-25 per ton to $26.5 per ton. A 6,000-ton corn shipment from Orlivka to Italy was fixed at $39 per ton.

The Baltic Dry Index (BDI) saw a slight pause during the week before rising again from 2,345 points to 2,374 points. The Baltic Supramax Index (BSI) continued its upward trend, moving from 1,318 to 1,326 points, thus bringing the average daily Supramax revenue to $14,581. The Baltic Handysize Index (BHSI) also continued its upward trend, rising from 762 to 781 points, with the average global Handysize earnings reaching $14,055 per day.

On the vessel sales front, the Ultramax segment was quiet this week. In the Supramax segment, the 2012 Japanese-built “Aulac Vanguard” was sold for $18.9 million, and the 2013 Chinese-built “Star Pyxis” went for $17.5 million. The over 20-year-old, 2004 Japanese-built “Gant Muse” found a buyer for just over $11 million.

In the Handysize segment, the 2015 Chinese-built 39K DWT “Western London” and “Western Panama” were each sold for $18.5 million, while the 2012 Chinese-built “White Sea” changed hands for $11.6 million.