According to an equity analyst at JPMorgan the core sub-segments of the dry-bulk sector held most of their recentgains due in large part to ongoing strength in Chinese demand for imported ironore and stockpiling ahead of the Lunar New Year, which begins at the end of January.
In a client briefing equity analystChristopher Combe pointed out that the Baltic Dry Index (BDI) jumped 2.00% week-on-weekbefore hitting 2,277 on 24 December and noted the figure, which represents the finalquote for 2013, is roughly 50% greater than the long-term median.
In the final stretch of 2013 the equityanalyst claims modern capesize, panamax and handymax bulkers trading in thespot market were experiencing day rates of approximately $41,000, $11,000 and$15,000 on average, respectively.
While these levels represent declines ofaround 7%, 3% and 3% week-on-week data compiled by Global Hunter Securitiesindicates that capes, panamaxes and handymaxes were earning just $4,900, $5,500and $6,600, respectively, at the close of 2012.
According to a leading Europeanshipbroker these same classes of dry-bulk tonnage hit highs of approximately $65,000, $28,500and $24,500 per day, respectively, in 2013 and experienced average lows ofaround $7,600, $7,000 and $8,100.
Tankers
On the tanker front Combe claims day rates for aframaxes and suezmaxes spikedat the end of 2013 on the heels of firmer demand but noted that levels attachedto VLCCs fell due of a steep reduction in Chinese chartering activity.
“Aframax and suezmax spot rates surged in week 51 but were mixed [inweek 52]and still remain well above historical levels,” the researcherwrote, adding: “VLCC rates edged down slightly on lower Chinese imports duringholidays.”
Combe says VLCCs were fetching $51,000 perday in the spot market, which represents a 5% dip week-on-week, notes suezmaxaverages slipped 8% to $59,000 and claims aframaxes watched daily rates rise 5%to around $41,000.
At the close of 2012 researchers atGlobal Hunter Securities say day rates for VLCCs, suezmaxes and aframaxes thattraded spot topped out at around $31,500, $22,500 and $19,300, respectively,but note there was a high variance between tonnage tied to different routes.
In week 51 of 2013 a leading Europeanshipbroker claims the same respective tanker classes were seeing freight rates ofapproximately $25,500, $17,500 and $13,500 when fixed on one-year timecharters, which are well above average lows of around $17,500, $14,750 and$12,250.
The Baltic Exchange and most shipbrokersin both the wet and dry sectors issued their final market updates of 2013 lastweek due to the seasonal lull and holiday recess but are scheduled to resume regular rate updates next week.
