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The general dry bulk cargo index entered the new year with a decline, with the largest decline occurring in the smaller sizes, followed by the larger ones. More specifically, Capes fell by 7.5%, Kamsarmaxes -9.67%, Supramaxes -13.3%, and Handies -10.1%, compared to the previous week. Thus, the BDI fell by 9.6% (compared to the beginning of the week) and closed at 1130 credits on Friday, January 6.
Let’s see, in more detail, how the dry cargo market by ship size moved last week, starting with CAPEs. Asia lost ground, however there was some activity between W. Australia and China. Next week we expect more movement hoping that charterers will move a bit more before Chinese New Year. Index levels on the Australia-China route (C5) closed at $7.14/tn on Friday.
The Atlantic was quiet both North and South as the market has not returned to full swing since the holidays. Indexes on Friday regarding trips from Brazil to China reached up to $18.34/tn (for route C3), while rates from Continent to Asia closed at $31.3K/d (for route C9 ) and Transatlantic round trips at $18K/day (for route C8)
Regarding Kamsarmaxes, in the North Atlantic the week started off slow. Towards the end of the week we saw some new cargoes on the market improving the sentiment a bit but not rates. The South saw more movement in the early days of the week, although trading with China was limited. Then the market picture was not commensurate with the demand being limited. For example, the rates regarding trips from the E. Coast S. America (ECSA) to the Far East reached up to $15-16.5K/day + 500-650K BB (delivery to South America), from the US Gulf to Asia up to $20-22K/day (delivery to Continent) and Transatlantic round trips at $ 13-15 K/day.
On the other hand, in Asia the market started the week showing some movement, with some grain cargoes from Australia and coal from Indonesia. But there were plenty of ships available holding down the increase in rates. In the second half of the week the market presented a different picture since the volume of cargoes was reduced. Indonesia-Far East round trip rates ranged from $7.5-9.5K/day.
For Supramaxes-Ultramaxes in Southeast Asia there have been few coal cargoes and shipowner competition has been intense. SMXs rates for trips between S. E. Asia and the Far East dropped to 8-9K/day. Further north, the Far East was dry, with minimal loads due to pandemic measures. SMXs round trips to NOPAC rates ranged from $6-7.5K/day, W. C. India round trips from $5.5-7K/day and Atlantic (BH) round trips from $7-8K/day day.
In the Middle East Gulf and W. C. India the market appeared to have returned from the holidays as we saw new loads. However, the accumulation of capacity in the previous weeks left no room for upward trends. SMXs rates for Far East trips ranged from $10-11.5K/day (from Arabian Gulf (AG) – W. C. India (WCI)), for short trips between Arabian Gulf – W. C. India from $8.5-10K /day and trips to the Atlantic from $6.5-7.5K/day.
In the Atlantic and especially in the American Gulf the market declined, as was expected due to these days. The number of vessels available remained high and the cargoes that appeared on the market mainly for transatlantic trips were not enough to reverse the trend. SMXs transatlantic rates fell to $15-16.5K/day and to Asia to $20.5-22K/day. The ECSA area continued to decline following the holiday season trend. The rates of SMXs for trips to S. E. Asia-China fell to $18.5-20K/day and Transatlantic (Mediterranean/Continent) to $16.5-18K/day.
In Continent, the market moved at lower levels compared to the previous period, as the lack of loads mainly in the smaller sizes was evident. SMXs rates for round-local trips moved to $8.5-10K/day, regarding trips with SCRAP cargoes to the Mediterranean at $8-9K/day and to Asia at $15-16.5K/day. The Mediterranean lost ground as demand was subdued. Cargoes from Ukraine are limited and the wait for the security corridor to Ukrainian ports has grown significantly. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $14.5-16K/day (Canakkale delivery), to the other side of the Atlantic at $9.5-10.5K/day and within the Mediterranean at $ 10-11.5 K/day (outside war zones).
In the Handies market, in Continent the market moved at very slow speeds. The charterers returned to their offices from vacation having the initiative of the movements due to the many vessels available. Rates for the largest vessels in the class, for round trips fell to $8-9.5K/day, to the Mediterranean with Scrap cargoes to $8-9K/day and for Transatlantic trips to $7-8K/day.
In the Mediterranean employment opportunities for shipowners were scarce and they paid four figures (for jobs outside of war zones) and only voyages to Asia paid slightly higher. Larger vessel rates (above 36K tonnes DWT) for intra-Med trips moved to $7.5-8.5K/day (delivery at Canakkale), to Europe at $7-8K/day (delivery at Canakkale) , to the other side of the Atlantic at $7.5-8.5K/day (Canakkale delivery) and to Asia at $10.5-11.5K/day.
On the other side of the Atlantic, in the US Gulf the market showed bearish trends but there was movement with some trades emerging for the middle of the month. Indicatively, the fares of the largest ships in the class for trips to the other side of the Atlantic ranged from $9.5-10.5K/day and to Asia at $11.5-12.5K/day.
In the East Coast of South America (ECSA) area there have been some cargoes mainly for mid-January but vessels already open are struggling to find employment. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent– Mediterranean) moved to $13.5-14.5K/day and to Asia at $19-20.5K/day.
In Asia, both the Far East and the South, all routes moved in the four digits as demand was weak to support the market. The Middle East Gulf and India showed a somewhat better picture holding on to last week’s figures. Far East and NOPAC round trip charterers on larger vessels closed at $7-8.5K/day, from S. E. Asia to China at $8-9K/day and from the W. C. India to China at $8.5-10K/day.