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The general dry bulk cargo index advanced with a big increase last week, with Capes leading the freight market, while the rest of the sizes showed marginal changes. More specifically, capes increased by 31.2%, Kamsarmaxes -0.4%, Supramaxes +0.4%, and Handies -3.7%, compared to the previous week. Thus, the BDI increased by 12.55% (compared to the previous week) and closed at 1560 credits on Friday, December 16.
Let's see, in more detail, how the dry bulk cargo market by ship size moved last week, starting with CAPEs. In Asia the week started strongly with many new cargoes, despite the fact that there were several vessels available and competition between shipowners was intense. However, this did not stop freights from rising. Index levels on the Australia-China route (C5) closed on Friday at $8.63/tn.
In the Atlantic Basin the market moved positively led by increased demand from West Africa and Brazil. Several vessels from the North found employment in the South. Thus, the supply of capacity in the North Atlantic was also limited, simultaneously raising the rates in the region. Indexes on Friday regarding trips from Brazil to China reached up to $21.28/tn (for route C3), while rates from Continent to Asia closed at $36.8K/d (for route C9 ) and Transatlantic round trips at $26.14K/day (for route C8).
Regarding Kamsarmaxes in the Atlantic Basin during the first days of the week, the flow of cargoes was limited for both North and South. The picture then improved mainly in the North, due to the limited capacity on offer. Instead the south continued its downward trend as many shipowners tried to avoid business to the Pacific. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $14-16K/day (Asia delivery), the US Gulf to Asia up $23-25K/day (Continent delivery) and transatlantic round trips up to $18 -20 K/day.
On the other hand, in Asia the week started with several new cargoes, however charterers preferred either to wait and not give numbers, or to focus on the smaller and cheaper ships of the class, putting pressure on the market. In the second half of the week, activity improved, while rates also increased. Indonesia-Far East round trip rates ranged from $10-12K/day.
For Supramaxes-Ultramaxes in Southeast Asia the market continued to decline as coal cargoes were not enough to support the market. SMXs rates for travel between N.A. Asia and the Far East fell to 9-10.5K/day. Further north, the Far East started as it ended the previous week, however towards the end of the week activity subsided. SMXs round trip NOPAC rates ranged between $8-9.5K/day, W. C. India round trips between $6.5-8K/day and Atlantic Basin (BH) round trips between $7.5- 9K/day.
In the Middle East Gulf and W. C. India the market showed improvements towards the end of the week despite the large number of vessels available in the region. Net cargoes and iron ore from West India to Southeast Asia helped the market. SMXs rates for Far East trips ranged from $10.5-12K/day (from Middle East’s Gulf (MEG) – W. C. India (WCI)), short trips between Middle East Gulf – W. C. India from $8.5-10K /day and regarding trips to the Atlantic from $6.5-7.5K/day.
In the Atlantic Basin and especially in the US Gulf, the market moved up thanks to petcoke cargoes with loading dates in December. SMXs rates for Transatlantic trips increased to $22-23.5K/day and to Asia to $29.5-31K/day. The ECSA area has seen improvements mainly regarding trips due this month, as the number of vessels immediately available has decreased. The rates of SMXs as regards trips to N.A. Asia-China fell to $22-23.5K/day and for Transatlantic trips (Mediterranean/Continent) increased to $23.5-25K/day.
Continent started the week hesitantly, however the movement of some vessels out of the region helped the freight market to remain flat. SMXs round-local rates moved up to $11.5-13K/day, for SCRAP cargo trips to the Mediterranean up to $10.5-11.5K/day and to Asia up to $16.5- 18K/day. The Mediterranean continued to decline due to limited activity and only the western Mediterranean saw more action. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $17.5-19K/day (Canakkale delivery), to the other side of the Atlantic at $11.5-13K/day and within the Mediterranean at $ 12-13.5 K/day.
In the Handies market, in Continent the market moved without particular changes compared to the previous week, mainly due to grain cargoes. Fares for the largest ships in the class, for round trips remained at $11-12.5K/day, to the Mediterranean with Scrap cargoes at $10.5-12K/day and for Transatlantic trips at $10-11.5K /day.
The Mediterranean was under pressure for another week and only trips to the other side of the Atlantic showed any interest. LLarger vessels’ rates (over 36K tonnes DWT) for intra-Med trips moved between 8.5-10K/day (delivery at Canakkale), to Continent between $8-9K/day (delivery to Canakkale), to the other side of the Atlantic between $8.5-10K/day (delivery to Canakkale) and to Asia between $12-13.5K/day.
On the other side of the Atlantic, in the US Gulf the market appeared to be stabilizing as the supply of vessels was reduced, while the flow of cargo remained stable. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $14-15.5K/day and to Asia from $16.5-18K/day.
In the East Coast of South America (ECSA) the market saw a further drop in rates as shipowners’ options were limited and many shipowners preferred to book their vessel at lower levels ahead of the holidays. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved between $21-22.5K/day and to Asia between 24-25.5K/day.
In Asia, Far East and Southeast Asia experienced a downturn, either due to an oversupply of ships, or due to various technical problems in the ports of the north, which resulted in reduced cargo flow. In the Middle East’s Gulf and the W. C. India the picture was better due to the increased demand shown by the Gulf. Far East and NOPAC round trip charterers on larger vessels were closing in at $9-10.5K/day, from N.A. Asia to China at $10-11K/day and from the West. India to China at $8.5-10K/day.