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The decline in the dry bulk cargo market continued last week, with Capes and Supramaxes showing the biggest declines. More specifically, capes fell by 19.6%, Kamsarmaxes -6.44%, Supramaxes -14.52%, and Handies -6.8%, compared to the previous week. Thus, the BDI fell by 211 credits (-13.75%) and closed at 1323 credits on Friday, November 4.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessel’s size starting with CAPEs. In Asia there may have been some signs at the start of the week that the market would do better as we saw vessels that were open decreasing, but this was quickly belied as cargoes from Western Australia to China closed on lower levels. Index levels on the Australia-China route (C5) closed on Friday at $8.05/tn.
In the Atlantic Basin recession was observed but the picture was better than Asia. Vessels that were able to load in November could reach higher rates than their counterparts with December dates. Indexes on Friday regarding trips from Brazil to China reached up to $19.6/tn (for route C3), while rates from the Continent to Asia closed at $28.125K/d (for route C9) and as regards Transatlantic round trips at $16.75K/day (for route C8).
Regarding the Kamsarmaxes in the Atlantic Basin, the East Coast of South America (ECSA) has been quite active with many conversations between charterers and shipowners developing. The rest of the week continued at the same rate. The North Atlantic started the week calmer with demand in the US Gulf remaining on the lowerlevels. Indicatively, rates regarding trips from the ECSA to the Far East reached up to $30-32K/day (Latin America delivery) and to Continent up to $27-29K/day (Latin America delivery), from the US Gulf or N .South America Coast to Asia up to $27-29K/day (Gulf delivery).
On the other hand, in Asia the week started with some coal cargoes from Indonesia while Australia was more active as well. In the middle of the week we saw a lot of bookings taking place but towards the end charterers preferred to take a wait-and-see attitude in order to contain any rise in rates. Indonesia-Far East round trip rates ranged berween $13-15K/day.
For Supramaxes-Ultramaxes in Southeast Asia the market was proved unable to recover as coal cargoes were scarce and charterers preferred to wait. SMXs rates regarding trips between N.A. Asia and the Far East fell to 8.5-10K/day. Further north, the Far East continued its freefall with rates on several routes moving into four figures. SMXs rates for round trips to NOPAC moved between $7.5-9K/day, as regards trips to W. C. India at $5.5-6.5K/day, and regarding returning trips to the Atlantic (BH) to $9- 10.5K/day.
In the Middle East Gulf and W. C. India the market continued to be under pressure by the increased number of available vessels while cargo flow remained limited. SMXs rates regarding Far East trips ranged from $11.5-13K/day (from Middle East’s Gulf (MEG) – W. C. India (WCI)), as regards short trips between MEG – W. C. India from $10.5-11 .5K/day and for trips to the Atlantic Basin from $9.5-10.5K/day.
In the Atlantic Basin and especially in the US Gulf the market was calm and many owners preferred to move quickly even with some discount on their ideas rather than stay "open". SMXs rates regarding transatlantic trips fell to $17.5-18.5K/day and to Asia to $21.5-23K/day. ECSA's area moved downwards despite the fact that vessels available in the area decreased. With demand being subdued rates were driven to lower levels. Rates of SMXs for trips to N.A. Asia-China fell to $25-26.5K/day and for Transatlantic trips (Mediterranean/Continent) fell to $30.5-32K/day.
Continent retreated as demand was insufficient to meet the increasing supply of capacity. SMX rates for round-local trips moved between $21-22K/day, regarding trips with SCRAP cargoes to the Mediterranean between $20.5-22K/day and to Asia between $24.5-25.5K/ day. The Mediterranean continued the downward trend of the previous days. There is a lot of turmoil about the continuation of grain exports from Ukraine. The news seems to be positive, however we are waiting to see if Russia's positive response will finally be materialized. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia was closed at $24.5-25.5K/day (Canakkale delivery), to the other side of the Atlantic at $17.5-19K/day and within the Mediterranean at $ 18.5-19.5 K/day.
In the Handies market, in the Continent the market further declined with the area’s open vessels steadily increasing. The charterers seemed to be busy with Eisbein's parties. Rates for the largest vessels in the category for round trips fell to $17-18.5K/day, to the Mediterranean with Scrap cargoes to $16-17K/day and for Transatlantic trips to $14.5-15.5K /day.
The Mediterranean was also under pressure this week. There is nervousness due to developments regarding the corridor for Ukrainian exports. Larger vessel rates (over 36K tonnes DWT) for trips in the Mediterranean moved between $19-20K/day (delivery at Canakkale), to Continent between $19-20K/day (delivery to Canakkale), to the other side of the Atlantic between $16.5-18.5K/day (Canakkale delivery) and to Asia between $22-23K/day.
On the other side of the Atlantic, in the American Gulf the market continued at lower levels. A decrease in available ships can also be observed, however again the demand is not enough to cover the supply. Indicatively, rates of the largest vessels of the category for trips to the other side of the Atlantic ranged between $14.5-15.5K/day and in Asia between $17-18K/day.
In the East Coast of South America (ECSA) area the market remained the star of the Atlantic in terms of rates, although there was a decline there. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved between $27-28.5K/day and to Asia between $26.5-28K/day.
In Asia, Far East and South East Asia continued to decline with the list of vessels in the region being large and enhanced by vessels moving from East India. At the same time, cargoes from Indonesia and Australia are limited. In W. C. India and the Gulf the picture was even more disappointing with little activity and capacity concentration. Far East and NOPAC round trip rates regarding larger vessels closed at $9.5-11K/day, from S. E. Asia to China at $9-10.5K/day and from the W. C. India to China at $11.5-12.5K/day.

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