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The dry bulk cargo market continued to rise thanks to the increase in large sizes compared to the previous week. Capes and Panamaxes showed improvements, while Supramaxes and Handies posted losses. In detail, Capes are up 35.7%, Kamsarmaxes +11.28%, Supramaxes -10.15% and Handies -8.05%, compared to the previous week. Thus, the BDI increased by 136 credits (compared to the previous week) and closed at 1055 points on Friday, June 9.
Let’s see, in more detail, how the dry bulk cargo market by ship size moved last week, starting with CAPEs. In Asia the market was particularly active at the start of the week with the three largest charterers taking out claims from Western Australia to China. Later in the week we saw pace drop and rates correct. Index levels on the Australia-China route (C5) closed on Friday at $8.735/tn.
In the Atlantic Basin the market was relatively calm. There have been several tapper vessels moved from Asia with ship owners hoping to find better opportunities. It is worth noting that especially in cargoes from the south of Brazil we saw an increase in the ideas of ship-owners. Indexes on Friday for trips from Brazil to China reached up to $19.7/tn (for route C3), while rates from Continent to Asia closed at $28.78K/d (for route C9 ) and Transatlantic round trips at $7.91K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin the week started briskly with several new cargoes. But there was a dip in the middle of the week, which was overcome in the last few days, thanks to increased demand from Latin America to Asia. For example, rates regarding trips from the E. Coast of S. America (ECSA) to the Far East reached up to $22-24K/day (S.America delivery), Continent to Asia at $19-21K/day (Continent delivery) and transatlantic round trips at $7 -9 K/day (delivery to Gibraltar).
On the other hand, in Asia we saw a strong market start during the first days of the week. The week progressed at the same pace with satisfactory cargo flow apart from Australia as well as from Indonesia. Indonesia-Far East round trip rates ranged from $9-11K/day (Far East delivery).
For Supramaxes-Ultramaxes Southeast Asia declined due to the lack of coal cargoes from Indonesia. SMXs rates for travel between S.E. Asia and the Far East fell to 7-8.5K/day. Further north, in the Far East, the market had a good start to the week, with some loads, but the continuation was not proportionate, resulting in further losses. SMXs rates for round trips to NOPAC moved to $6.5-8K/day, for trips to W. C. India $7.5-9K/day and round trips across the Atlantic (BH) to $5.5- 7K/day.
In the Middle East Gulf and W. C. India the market continued with reduced demand and few new cargoes. However, the offered capacity of vessels in the region is stable, therefore an increase in demand will lead to an improvement in the climate. SMXs rates for Far East trips ranged between $10-11.5K/day (from Middle East Gulf (MEG) – W. C. India (WCI)), short-haul between Middle East Gulf – W. C. India at $7.5-9K /day and trips to the Atlantic Basin $4.5-6K/day.
In the Atlantic Basin and especially the American Gulf continued without particular changes with activity remaining at low levels. The increased number of available vessels is problematic. SMXs transatlantic rates fell to $9.5-11K/day and to Asia $15-16.5K/day. The ECSA region showed slight improvements at the start of the week, thanks to an increase in cargoes for larger vessels. However, the sequel was not similar. Thus, rates remained at the same levels as the previous week. Rates of SMXs for trips to S.E. Asia-China moved to $13.5-15K/day and for Transatlantic travel (Mediterranean/Continent) to $12.5-14K/day.
In Continent the market appeared to stabilize. There may not have been many cargoes but the reduced number of vessels helped the market not to lose further ground. SMXs rates for circular-local trips moved to $9.5-11K/day, for trips with SCRAP cargoes to the Mediterranean at $8.5-10K/day and to Asia to $14.5-16K/ day. The Mediterranean showed downward trends for another week, with the biggest ones in travel to Asia. We said an increased number of loads from the Western Mediterranean. For example, it is reported that an SMX for a trip from the Mediterranean to Asia was closed at $13.5-15K/day (Canakkale delivery), to the other side of the Atlantic at $6.5-8K/day and within the Mediterranean at $ 7-8.5 K/day (outside war zones).
In the Handies market, in Continent the market saw further losses as the number of closures was down and the number of available vessels remaining in the region high. Rates for the largest vessels in the category, for round trips remained at $8.5-10K/day, to the Mediterranean with Scrap cargoes at $7.5-9K/day and for Transatlantic trips at $7-8.5K /day.
The Mediterranean retreated with few deals emerging. The increased capacity offered put additional pressure on rates. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $6-7.5K/day (delivery at Canakkale), to Continent at $6.5-8K/day (delivery to Canakkale) , to the other side of the Atlantic Basin at $6.5-8K/day (delivery to Canakkale) and to Asia at $9-10.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market continued to contract with the oversupply of capacity putting further pressure on others. Some loads from the East Coast to the West have been of interest. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic ranged between $7.5-9K/day and to Asia at $10.5-12K/day.
In the East Coast of South America (ECSA) region the market got off to a quiet start with few cargoes. But we saw more movement towards the end of the week, from the North while there was also some transatlantic travel from the South. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $11.5-13K/day and to Asia at $14.5-16K/day.
In Asia the market started the week with shipowners and charterers on hold. The only movement was seen for cargoes from Australia which was not enough to cover the gap in the North and South. In the Gulf of the Middle East and the West C. India the week progressed without particular changes and only from the East Coast we saw some cargoes. Far East and NOPAC round trip charters on larger vessels closed at $7-8.5K/day, from S. E. Asia to China at $9-10.5K/day and from the West C. India to China at $8.5-10K/day.