Dry Bulk Market Commentary March 18-22, 2024

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Dry Bulk Market Commentary March 18-22, 2024

The freight market has shown signs of recovery recently. Congestion in narrow waterways such as the Kerch Strait and the Turkish Straits has led to a decrease in available tonnage, while freight rates have increased. For example, freight rates for 3,000-ton shipments on the Azov-Marmara route increased from $33-34 per ton last week to $37-38 per ton this week. Similarly, freight rates for the Rostov-Marmara route rose from $35-36 per ton to $40 per ton, and for the Rostov-Mersin route from $61-63 per ton to $62-64 per ton.

In the conventional coaster market, 5,000-ton Novorossiysk-Marmara steel shipments remained stable at around $20-21 per ton, while wheat shipments hovered at $22-23 per ton. Business on the Izmail/Reni-Marmara route continued at around $26-27 per ton, with corn shipments from Izmail to Izmir priced at $29-30 per ton. A 6,500-ton corn shipment from Chernomorsk to Alexandria was fixed at $36 per ton.

The Baltic Dry Index (BDI) fell from 2,374 points to 2,196 points, with the Capesize and Panamax segments contributing to the decline. In contrast, the Supramax and Handysize segments continued their upward trend. The Baltic Supramax Index (BSI) increased from 1,326 points to 1,383 points, with the average daily Supramax revenue rising from $14,581 per day to $15,212 per day. Earnings from Black Sea to Far East shipments increased from $27,242 per ton to $27,617 per ton, and the Gulf of Mexico-Far East route improved from $22,014 per day to $24,686 per day. Asian averages also saw a slight increase from $14,111 per day to $14,228 per day.

The Baltic Handysize Index (BHSI) rose from 781 points to 795 points, while global Handysize earnings increased from $14,055 per day to $14,309 per day. Intra-Mediterranean and Black Sea-Continent routes remained steady at around $13,000 per day, respectively. The Mediterranean-Far East route improved from around $20,000 per day to $22,000 per day, while South America-Continent freights went up from $18,656 per day to $20,236 per day.

In the ship sales market, no Ultramax sales were reported this week, but there were several Supramax transactions. The 2013-built 56K DWT "Pacific Integrity" was sold for $20.5 million, the 2010-built "Queen Busan" for $17 million, and the 2007-built "Straits Bay" for $14 million. Among the Chinese-built Supramax vessels, the 2013-built "Thetis" was sold for $17.5 million, the 2012-built "Hony World" for $14.7 million, and the 2011-built "Jiu Heng" for $13 million. The 2009-built "Aspen" was sold to Turkish buyers for $9 million. In the Handysize segment, the 2011 Korean-built 37K DWT "Omnia" was sold to Greeks for $15 million, and the 2017-built "Asian Bulker" fetched $24 million. Additionally, a 1991-built 2,300 DWT coaster changed hands for $1.2 million.