Dry Bulk Demand Pushed the Market HigherDuring the First Half of 2024
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Published: 2024.07.15
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A combination of strong demand and low tonnage supply has triggereda dry bulk market upside during the first half of 2o24. In its latestweekly report, shipbroker Banchero Costa said that “2o23 was a verypositive year for the global dry bulk trade. In 2o23, the dry bulk trade grew4% driven by strong demand for coal, fertilizers, nickel ore, grains iron oreand bauxite. Coal was the main driver in 2o23 with growth of 7%.

 

"After such a strong performance during the first 6 months of 2024 coal demand slowed to 2%growth. Coal and soybeans are the only two large trades to show slowing growth in 2o24. Thesoybeans trade grew by 16% in the frst 6 months of 2023, but so far this year demand has beenessentially flat (-0.6%). As mentioned above, demand for all other trades has continued to growand has accelerated further, lron ore demand is up 5% so far this year, compared to 4% duringin 2023. The grains trade is up 1o%, while it was flat in 2023. The bauxite trade grew by 4% in2023, with demand up g% so far in 2024. The steels trade is the fastest growing with Chineseexports booming. Steel trade demand is growing 18% in 2024 after very slow growth 2023. Thefertilizers trade grew around 5% last year, in 2024 is up a further 5% Agribulks were stable in2023, they have been growing g% in the frst 6 months of 2024", the shipbroker said.

 

Banchero Costa added that "overall, according to AXS Marine vessel tracking data, dry bulkdemand remained strong in the frst half of 2024, accelerating further to 6% growth comparedto the same period in 2023. lron ore accounts for 3o% of the additional demand created in 2024.followed by grains (12%), coal and steels (10% each), bauxite (6%), agribulks (4%) and fertilizers(3%). With such healthy demand, the disruptions in Panama and the Red Sea, and the fleetgrowing by 2% in the first 6 months of the year, it is not surprising that the average rates for thefrst 6 months of 2024 are significantly higher than for the same period in 2023”:

BDl: 1.836 (+59%)

C5TC: $23.482/d (+92%)

P5TC: $15.910/d (*35%)

S10TC: $13.975/d (+34%)

HS7TC: $12.520/d (+25%)

 

Meanwhile, on Friday, the Baltic Exchange's main sea freight index, which tracks rates for shipsferrying dry bulk commodities, rose on Friday to mark a weekly gain on the back of higher ratesacross all the vessel segments. The overall index, which factors in rates for capesize, panamaxand supramax shipping vessels, gained 5o points, or 2.6%, to 1.g97. The index rose 2.g% thisweek. The capesize index rose 113 points, or 3.6%, to 3,2g6. The contract was up o.6% this week.Average daily earnings for capesize vessels, which typically transport 150.000-ton cargoes.such as iron ore and coal, were up $g42 at $27,338.

Source: Hellenic Shipping News Worldwide

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