www.TheSeaNation.gr

The dry bulk cargo market continued to decline with a decline recorded in all sizes compared to the previous week. The largest sizes recorded the biggest losses, followed by the smallest. More specifically, Capes decreased by 14.3%, Kamsarmaxes -12.8%, Supramaxes -2.55% and Handies -3.1%, compared to the previous week. Thus, the BDI decreased by 174 points (compared to the previous week) and closed at 1384 credits on Friday, May 19.
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 market was active with a satisfactory cargo volume. Major charterers were present with iron ore cargoes from Western Australia to China and some cargoes to Japan. Despite this, the negative climate did not change, resulting in the week closing in the red. Index levels on the Australia-China route (C5) closed on Friday at $8.8/tn.
In the Atlantic Basin, the week started calmly. The middle of the week saw more action with quite a few closes. However, in the last two days the market has declined, recording double-digit losses compared to the previous week. Indices on Friday for trips from Brazil to China reached up to $20.79/tn (for route C3), while rates from Continent to Asia closed at $34K/d (for route C9) and Transatlantic round trips at $20.82K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic and especially in the north the market moved at slow speeds, as demand was very limited. There were enough ships in southern Africa which increased the competition of the shipowners and the charterers preferred to wait in order to reduce the rates. South America was active; however, this was not reflected in rates which saw a drop. For example, the rates for the trips from thefE. Coast Of S. America (ECSA) to the Far East reached up to $25-27K/day (S. America delivery), from Continent to Asia at $18.5-20.5K/day (Continent delivery) and the circular Transatlantic trips at $8-10K/day (Gibraltar delivery).
On the other hand, in Asia the week ended lower than the previous week as new cargoes from Indonesia, Australia and the North Pacific were absent. Indonesia-Far East round trip rates ranged between 9-10.5K/day (Asia delivery).
For Supramaxes-Ultramaxes Southeast Asia started the week quietly, but picked up mid-week with more coal cargoes. SMXs rates for travel between S.E. Asia and the Far East stayed at 10.5-12K/day. Further north, in the Far East the market declined due to reduced demand from the north. Also, many ship owners avoid traveling to India because of the monsoons. SMXs round trip NOPAC rates ranged between $6.5-8K/day, India round trips $7.5-9K/day and Atlantic (BH) round trips $8.5- 10K/day.
In the Middle East Gulf and W. C. India the market continued without particular changes. Several vessels are under discussion for some cargo but there is still an oversupply of capacity in the area. SMXs rates for Far East trips ranged between $13-14.5K/day (from Middle East’s Gulf (MEG) – W. C. India (WCI)), short-haul between Middle East Gulf – W. C. India at $10-11.5K /day and trips to the Atlantic Basin at $7.5-9K/day.
In the Atlantic Basin and especially the American Gulf moved upward as there was intense activity, with several closes which were made in higher numbers. There are still quite a few vessels in the area, but demand appears to be sufficient to keep the market moving in a positive direction. SMXs rates for Transatlantic trips rose to $18.5-20K/day and to Asia $22.5-24K/day. The ECSA region showed a recession in all routes. Many cargoes have been covered resulting in increased competition between shipowners. Rates of SMXs for trips to N.A. Asia-China moved to $20.5-22K/day and for Transatlantic trips (Mediterranean/Continent) to $18-19.5K/day.
In Continent, the lack of cargo is evident, with the result that rates are falling. SMX rates for round-trip local trips moved to $11-12.5K/day, for trips with SCRAP cargoes to the Mediterranean to $11.5-13K/day and to Asia to $16.5-18K/ day. The Mediterranean showed reduced activity, while many charterers used their own vessels. A positive point is the renewal of the agreement on the corridor to Ukrainian ports for 60 days. 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 $9.5-11K/day and within the Mediterranean at $ 11-12.5 K/day (outside war zones).
In the Handies market, in Continent the market declined further with shipowners scrambling for cargo, with no alternative from Russia. Rates for the largest vessels in the class, for round trips fell to $10.5-12K/day, to the Mediterranean with Scrap cargoes to $11-12.5K/day and for Transatlantic trips to $8.5-10K /day.
The Mediterranean has retreated, as there are not enough new cargoes to cover all of this region’s capacity. The positive news came from the extension of the agreement on Ukrainian ports by 60 days. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $9-10.5K/day (delivery at Canakkale), to Continent to $10.5-12K/day (delivery at Canakkale) , to the other side of the Atlantic Basin to $8.5-10K/day (Canakkale delivery) and to Asia to 2.5-14K/day.
On the other side of the Atlantic Basin in the US Gulf the market started the week with a retreat, but some loads that appeared in the middle of the week changed the mood. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $11.5-13K/day and to Asia at $16.5-18K/day.
In the East Coast of South America (ECSA) market continued to decline as there may have been demand but competition from shipowners was such that rates fell. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $16.5-18K/day and to Asia to $18.5-20K/day.
In Asia and particularly in Southeast Asia the market started the week with optimism and the appearance of some cargoes. However, the overall picture in all areas was negative as the flow of cargo was limited. 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 WWC. India to China at $10.5-12K/day.