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The dry bulk cargo market continued without particular changes with small fluctuations in the various sizes being recorded in all sizes compared to the previous week. In detail, Capes are up 3%, Kamsarmaxes -6.6%, Supramaxes +0.85% and Handies -2%, compared to the previous week. Thus, the BDI remained stable (compared to the previous week) and closed at 1558 credits on Friday, May 12.
Let’s see, in more detail, how the dry cargo market by ship size moved last week, starting with CAPEs. In Asia the biggest charterers were active at the start of the week, resulting in cargo volume from Australia to China. However, from the middle of the week onwards in the Pacific, the demand fell and as a result the climate changed. Index levels on the Australia-China route (C5) closed Friday at $8.95/tn.
In the Atlantic Basin market, the picture was better both in the North and in the South. In the North capacity was limited while in the South we saw more activity mainly at the beginning of the week. Indexes on Friday for trips from Brazil to China reached up to $22.19/tn (for route C3), while rates from Continent to Asia closed at $38.19K/d (for route C9 ) and Transatlantic round trips at $25.86K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic Basin the lack of demand was evident and the supply of ships was strengthened by vessels moving from Asia. Thus, the charterers found the opportunity to impose their ideas and many closings were marked with delivery in South America. For example, rates for the trips from the E. Coast Of S. America (ECSA) to the Far East reached up to $28-30K/day (S. America delivery), from Continent to Asia at $21.5-23.5K/day (Continent delivery) and the circular Transatlantic trips at $10.5-12.5K/day (delivery to Gibraltar).
On the other hand, in Asia the market started the week with several demands for coal cargoes from Australia to India. In the middle of the week, demand fell in all regions, with the result that rates also decreased. Indonesia-Far East round trip rates ranged between $11.5-13.5K/day (Asia delivery).
For the Supramaxes-Ultramaxes, Southeast Asia proceeded without particular changes. At the beginning of the week the market moved positively, however later in the week the charterers managed to impose their pace. SMXs rates for travel bbetween S. E. Asia and the Far East stayed at 10-11.5K/day. Further north, in the Far East the market remained flat as there was plenty of movement. SMXs rates for NOPAC round trips moved to $8-9.5K/day, India round trips to $8-9.5K/day and Atlantic (BH) round trips to $8.5- 10K/day.
In the Middle East Gulf and W. C. India the market on most routes remained stable and only Atlantic trips showed a decline. Entering the monsoon season, we expect several problems to occur in the operation of the ports. SMXs rates for Far East trips ranged between $13-14.5K/day (from Middle East Gulf (MEG) – W. C. India (WCI)), short-haul between Middle East Gulf – W. C. India at $10.5-12K /day and trips to the Atlantic at $8.5-10K/day.
The Atlantic Basin and especially the American Gulf did not have a clear picture of its course. There were ups and downs in the numbers but the overall trend was slightly upward. On a positive note, capacity appears to be decreasing during the month. SMXs rates for Transatlantic trips rose to $18-19.5K/day and to Asia $22-23.5K/day. The ECSA region started the week strong with several closes. However, the follow-up was not proportionate, as a result of which the rates fell. Rates of SMXs for trips to N.A. Asia-China moved to $22-23.5K/day and for Transatlantic travel (Mediterranean/Continent) to $21-22.5K/day.
Continent retreated as a sudden increase in ships in the region combined with reduced demand drove rates lower. SMX rates for round-trip local trips moved to $12-13.5K/day, for trips with SCRAP cargoes to the Mediterranean to $12.5-14K/day and to Asia to $17.5-19K/ day. The Mediterranean retreated further although there were several talks of cargoes, which did not materialise. For example, 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 Basin at $12.5-13K/day and within the Mediterranean at $ 11.5-13 K/day (outside war zones).
In the Handies market, in Continent the market continued to activate due to oversupply of capacity, while at the same time demand was also reduced. Rates for the largest vessels in the class, for round trips fell to $11.5-13K/day, to the Mediterranean with Scrap cargoes to $12-13.5K/day and for Transatlantic trips to $8.5-10K /day.
The Mediterranean was calm. There were several discussions about loads, but it seems that they were not closed. Thus a fall in the market was observed. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $10-11.5K/day (delivery at Canakkale), to Continent at $10.5-12K/day (delivery at Canakkale) , to the other side of the Atlantic at $8.5-10K/day (Canakkale delivery) and to Asia at $12.5-14K/day.
On the other side of the Atlantic Basin in the US Gulf the week started strongly with a satisfactory flow of cargo, however the continuation was not commensurate as there was an abundance of ships available which put pressure on the rates. Indicatively, rates of the largest ships in the class for trips to the other side of the Atlantic Basin ranged from $10-11.5K/day and to Asia at $16.5-18K/day.
In the East Coast of South America (ECSA) region the market saw plenty of activity with many transatlantic and coastal trips. However, it seemed that this was not enough for the increase in rates. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $17.5-19K/day and to Asia at $19-20.5K/day.
In Asia Far East and Southeast Asia showed improvements thanks to improved demand from Indonesia. In the Arabian Gulf and West C. India, the market progressed without particular changes. As we enter the monsoon season, we expect delays and operational problems at Indian ports. Far East and NOPAC round trip charterers on larger vessels closed at $8-9.5K/day, from S. E. Asia to China at $9-10.5K/day and from the West C. India to China at $10.5-12K/day.