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The BDI continued to decline, with larger figures dragging the BDI lower. In detail, Capes fell by 45.46%, Kamsarmaxes -11.35%, Supramaxes +4.5%, and Handies -1.1%, compared to the previous week. Thus, the BDI fell by 8.14% (compared to the previous week) and closed at 621 credits on Friday, February 3.
Let’s see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. In Asia, the downtrends of the previous days continued despite optimism that after China’s return from the New Year holidays we would see improvements. Unfortunately, these were disproved as the minimum loads that appeared were covered early at lower levels than in the previous period. Index levels on the Australia-China route (C5) closed on Friday at $6.4/tn.
In the Atlantic Basin the picture was similar to Asia. Thus, both Brazil and the north recorded another weekly decline, since the new cargoes that would have stimulated the market were absent. Indexes on Friday for trips from Brazil to China reached up to $16.1/tn (for route C3), while rates from Continent to Asia closed at $18.9K/d (for route C9 ) and Transatlantic round trips at $5K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic Basin the large number of moving vessels and the small cargoes gave the charterers the right to have the first word. However, it is worth noting that there was a lot of mobility between charterers and shipowners. For example, rates for the trips from the E. Coast S. America (ECSA) to the Far East reached up to $11-13K/day (India delivery), Continent to Asia up to $15-17K/day (C7 delivery) and Transatlantic round trips up to $5.5 -7.5 K/day (delivery in Continent).
On the other hand, in Asia it seems that the charterers are back with an appetite for work. So, the week started with several discussions and continued at the same pace. Indonesia-Far East round trip rates ranged from $7-9K/day.
For Supramaxes-Ultramaxes in Southeast Asia the market was flat as cargo flows improved. SMXs rates for travel between S.E. Asia and the Far East rose to 7.5-9K/day. Further north, the Far East retreated this week as competition from shipowners for the few cargoes was intense. SMXs round trip to NOPAC rates ranged between $5-6.5K/day, India round trips between $5.5-7K/day and Atlantic (BH) round trips $5-6; 5K/day.
In the Middle East Gulf and W. C. India the market had a slow start, however the second half of the week moved positively, showing signs of recovery. SMXs rates for Far East trips ranged from $9-10.5K/day (from Middle East Gulf (MEG) – W. C. India (WCI)), for short trips between Middle East Gulf – W. C. India at $8.5-10K /day and trips to the Atlantic Basin at $4.5-6K/day.
In the Atlantic Basin and especially in the US Gulf, the market declined further, as sluggish activity and an oversupply of vessels were observed. SMX rates for Transatlantic trips fell to $6-7.5K/day and to Asia $10-11.5K/day. The ECSA area continued its downward trend, despite the fact that we saw some loads towards the middle of the month. But the available capacity left no room for rates to rise. The rates of SMXs for trips to S. E. Asia-China moved to $12-13.5K/day and for Transatlantic trips (Mediterranean/Continent) to $10-11K/day.
Continent continued to be under pressure due to cargo shortages. Only a few shipments of scrap to the Mediterranean disturbed the otherwise calm waters of the region. SMXs rates for round-trip local trips moved between $7.5-9K/day, for trips with SCRAP cargoes to the Mediterranean at $6-7.5K/day and to Asia at $11-12K/day. The Mediterranean started the week without any major surprises, with cargo flow remaining subdued. A positive point is the fact that some ships have been closed with cargo since mid-February. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $12-13.5K/day (Canakkale delivery), to the other side of the Atlantic at $7-8K/day and within the Mediterranean at $8- 9.5 K/day (outside war zones).
In the Handies market, in Continent the market remained flat despite the fact that there was a large number of vessels available. The main reason for this picture was the increased number of cargoes which restrained the market. Rates for the largest ships in the class, for round trips were maintained at $7.5-9K/day, to the Mediterranean with Scrap cargoes at $7-8K/day and for Transatlantic trips at $6-7K/day.
In the Mediterranean an improvement in activity was observed with more cargoes of grain from the Black Sea as well as minerals. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved between $9.5-10.5K/day (delivery at Canakkale), to Continent at $7-8K/day (delivery at Canakkale) , to the other side of the Atlantic at $6.5-8K/day (delivery to Canakkale) and to Asia at $10-11K/day.
On the other side of the Atlantic Basin, the US Gulf was calm with most of the market’s cargo covered by operators’ ships. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $6.5-8K/day and to Asia from $9-10K/day.
In the East Coast of South America (ECSA) region the market showed bearish trends for another week as the region’s offered capacity was up and is expected to increase further. Thus, larger vessel’s rates from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved between $9-10.5K/day and to Asia between $13.5-14.5K/day.
In Asia the market showed stabilizing trends with more mobility in the North and South. We saw more cargoes from Southeast Asia, which also improved the overall market sentiment. In W. C. India and the Middle East, the market moved in two gears. On the one hand W. C. India which declined due to reduced demand and on the other hand the Gulf which showed improvement as there were more cargoes. Far East and NOPAC round trip charters 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 $7.5-9K/day.