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Capesize 、Panamax、Supramax、Handysize dry bulk vessel Performance

The BDI was flat in May with the performance across all vessel categories showing a divergent trend. While the BCI staged solid recovery and rose 43% m/m, the BPI dropped ~20% m/m in May and registered the largest monthly decline. The BSI and BHSI moved 4% and -3% respectively over the last month.

• Capesize earnings were up ~21% m/m to USD 5,517pd. The mid-month increase in Chinese iron ore imports led by declining inventory at ports and dearth of tonnage in Atlantic fuelled a rally in Capesize rates. Higher daily earnings in the Pacific sustained throughout the month backed by ample cargo availability and were up ~13% in May. Meanwhile in the Atlantic, daily earnings dropped towards the end of May because of reduced seaborne iron ore movement and sufficient prompt tonnage.

• Panamax earnings slumped ~19% m/m to USD 4,191pd. The Pacific market was active with increased seaborne coal movements from Australia and Indonesia to India, but the volume was not large enough to have positive effect on freight rates due to a large number of open vessels. China’s coal imports declined ~41% y/y to 14.3m tonnes, and this decline was the main reason behind the drastic fall in freight rates.

• For Supramax vessels, grain volumes from ECSA to the Far East and the Continent helped activity in the Atlantic region. Increased Chinese nickel ore imports and coal exports from Indonesia to India aided freight rates in the Pacific region.

• Activity in the Handysize vessel segment remained dull as charterers preferred to use larger vessels in the Transatlantic trade. However, freight rates in the Far East improved because of a better supply-demand balance.

Source: Drewry Maritime Equity Research