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The dry bulk cargo market kept on growing. This growth is due to the week’s strong start off, while the second half of the week stayed under the shadow of war and the disquietude that its outbreak created. All vessel’s sizes presented a weekly increase, with capesizes increase only by 1%, Kamsarmaxes by +12%, Supramaxes by +4% and Handies +9%, compared to last week. With than given, BDI presented growth of 112 credits (+5,7%) and closed up at 2076 credits on Friday, 25th of February. However, next weeks will be different, while war seems to be continued and along with sanctions that will be imposed on Westerns, a new trade environment will be created.
Let’s now see, in detail, how the dry bulk cargo market moved during last week per vessel’s size, starting off with Capes. In Asia, the market retreated with bigger losses noted at transpacific trips. Raised supply of capacity and fuel cost are significantly limiting the profit margins of trips. Freight levels for the route Australia – China (C5) closed up at the end of the week at $ 8,8 / tn.
In N. Atlantic the market had a good start, with increasing rates. However incidents in the Black Sea lead numbers to a fall. Southern, the same picture was observed with a small retreat of C3. Considering that Black Sea comprise fundamental loading area, war is expected to disturb trading balance for the relevant size, as owners will focus on other areas. Friday freights, for trips from Brazil to China, reached up to $21,7 / tn (for C3 route), while rate from Continent to Asia closed up at $ 37,79 K/ day (for route C9) and transatlantic round trips at $ 16,33 K/ day (for route C8).
Regarding Kamsarmaxes, in north Atlantic the week started with many bookings in higher levels from last week, absorbing many market’s vessels. East Coast of South America, started off dynamically as well, with owners seeking for higher numbers. The rest of the week was overshadowed by the war between Russia and Ukraine, with the most sub-markets to be under pressure, while future predictions are ominous. Indicative rates for trips from E. Coast of S. America (ECSA) to the Far East reached up to $ 27- 28 K/ day (delivery at Asia), for the round transatlantic trips up to $ 20-22 K/day (delivery at Continent) and from the North Coast of South America to Asia up to $ 32,5 – 34,5 K/ day.
On the other side, in Asia, during the first days of the week satisfactory flow of cargo was noticed, that was maintained later on. Although, at the end of the week retreat of the positive environment was observed, with many conversations not to be lead in a booking after all. Round trip rates, from Australia to Far East moved between $ 23-26 K/ day.
As regards Supramaxes-Ultramaxes in S. E. Asia the market remained its increasing course along with increased demand and new cargo. SMX’s rates regarding trips between S. E. Asia and Far East levelled off at $ 34-35 K/ day. Noerthern, in the Far East the market kept on running, with charterers searching for vessels. An indicative clue of the stay predisposition of owners in the area is the fact that trips from Atlantic paid almost as much as the local ones. SMX’s rates as regards round trips from Far East to NOPAC moved between $ 30 – 31 K/ day, for trips to W. C. India between $ 33-34 K/ day and regarding return trips to the Atlantic Basin (BH) between $ 28-29 K/ day.
In Middle East Gulf (M.E.G.) and W. C. India significant growth was observed, due to limited number of available vessels. Charterers many times were discussing short time chartering in spite of voyage chartering, expecting to achieve lower numbers. SMX’s rates regarding trips to the Far East increased at $ 32-33,5 K/ day and trips to the Mediterranean at $ 26-27 K/ day.
In the Atlantic, and especially U. S. Gulf indicated low activity. Given that, rates retreated and according to the evidence to date, demand will remain on the lower levels in the next days. Rates considering SMXs as regards Transatlantic trips decreased at $ 21-22 K/ day and to Asia at $ 31-32 K/ day. In ECSA area, the dry bulk cargo market started off numbly, but its rhythms increased later on, reaching higher bookings as well. Supplied capacity shows an downward trend regarding next period, so we expecting the market to maintain the same tendency. SMX’s rates for trips to S. E. Asia-China levelled off at $ 34.5-35.5 K/ day and for transatlantic trips (Mediterranean/ Continent) at $ 32-33 K/ day (delivery at Recalada)
Continent’s market levelled off regarding all routes besides trips to Asia, while Far East’a strong market consists motivation by itself for movement at the area. SMX’s rates regarding round-local trips moved between $ 16-17 K/ day, regarding Scrap cargo trips to Mediterranean between $ 16.5-17.5 K/ day and to Asia between $ 26.5-27.5 K/ day. In the Mediterranean the market is “frozen”, overshadowed by the incidents of the war. Rates are retreating and no one can predict what is expected. It is indicative claimed, that a SMX for a trip to the Mediterranean/ Black Sea to Asia closed up to $ 32-33 K/ day (delivery at Canakkale/ Black Sea) to the other side of the Atlantic Basin at $ 19-20.5 K/ day an in the Mediterranean at $ 21.5-22.5 K/ day.
As regards Handies market, in Continent the market illustrated an upward trend in the beginning of the week, but the outbreak of the war caused disturbance in the freight market as well. Category’s bigger vessels, considering round trips remained stable at $ 15-16 K/ day, to the Mediterranean with Scrap cargo at $ 14.5-15.5 K/ day and for transatlantic trips increased at $ 15-16 K/ day.
Mediterranean declined sharply in the shadow of war. The most owners avoided to go in the Black Sea and vessels moved to Mediterranean. Rates of the bigger vessels (past 36K tonne DWT) regarding trips in the Mediterranean moved between $ 16-17 K/ day (delivery at Canakkale), to Continent between $ 14,5-15,5 K/ day (delivery at Canakkale), to the other side of the Atlantic Basin between $ 15-16,5 K/ day (delivery at Canakkale) and to Asia between $ 21-22 K/ day.
On the other side of the Atlantic Basin, in the U. S. Gulf fluctuated tendencies were observed, while rates levels ranged according to delivery area of the vessel. Indicative, rates of the bigger vessels of the category as regards trips to the other side of the Atlantic basin remained at $ 17-18 K/ day and to Asia at $ 24,5-25,5 K/ day.
ECSA’s market seems to be affected from the war outbreak and most routes retreated, especially regarding trips to the Mediterannean. With that given, rates of the bigger vessels from the ECSA market for transatlantic trips (Continent-Mediterranean) moved between $ 25-26 K/ day and to Asia between $ 32-33 K/ day.
At Asia, all routes showed that they are not affected from the Ukrainian incidents and kept on running. Supply of vessels remained on the lower levels, while cargo flow was satisfactory regarding all routes. Bigger vessels’ rates of the category, regarding round trips to the Far East and NOPAC closed up at $ 37-38 K/ day, from S. E. Asia to China at $ 36,5-37,5 K/ day and from W. C. India to China at $ 31,5-32,5 K/ day.

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