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Last updateΠεμ, 25 Ιουλ 2024 12am

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The Dry Bulk Cargo Market continued positively

0Dry bulk

Iakovos (Jack) Archontakis
Commercial Manager TMC MARITIME CO.

Dr. Fotios-Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market continued to rise with gains being noted in all sizes and the indexes of Capes and Supramaxes showing a double-digit increase compared to the previous week. More specifically, Capes are up 30%, Kamsarmaxes +1.78%, Supramaxes +11% and Handies +5.67%, compared to the previous week. Thus, the BDI increased by 212 credits (compared to the previous week) and closed at 1593 credits on Friday, September 22.
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 week started with many coal cargoes from Eastern Australia to the Far East. But the rest of the week was not commensurate with many shipowners considering a move to the Atlantic Basin. Index levels on the Australia-China route (C5) closed Friday at $9.495/tn.
The North Atlantic was calm. On the one hand, the capacity was limited, but on the other, the volume of cargo left no room for an increase in rates. The south showed a better picture with southern Brazil and West Africa offering several alternatives for shipowners traveling to Asia. Indexes on Friday for trips from Brazil to China reached up to $22.37/tn (for route C3), while rates from Continent to Asia closed at $38.5K/d (for route C9 ) and Transatlantic round trips at $17.15K/day (for route C8).
Regarding Kamsarmaxes, there has been a lot of activity in the Atlantic Basin and especially in the north with several closures, most of which involved trips to Asia. At the same time, the capacity offer is limited. In Brazil there were quite a few trucks for early October which led to a small increase in rates at the beginning of the week. Afterwards, calm prevailed, with the result that the shipowners relented on their demands. For example, rates for the trips from the E. Coast S. Americas (ECSA) to the Far East reached up to $15-17K/day (Asia delivery), Continent to Asia at $24-26K/day (Continent delivery) and Transatlantic round trips at $14.5 -16.5 K/day (delivery to Gibraltar).
On the other hand, in Asia the market progressed without particular changes. North Pacific and Indonesia were active but Australia’s absence kept fares flat. Indonesia-Far East round-trip rates moved to $12-14K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market recorded gains with increased demand for coal cargoes and charterers increasing their numbers to find a vessel. SMXs rates for travel between S.E. Asia and the Far East rose to 17-18.5K/day. Further north, in the Far East we saw a strong upward trend with many nickel cargoes from northern China. SMXs rates for NOPAC round trips moved to $11-12.5K/day, for W. C. India trips to $12-13.5K/day and Atlantic (BH) return trips to $10-11, 5K/day.
In the Middle East Gulf and West C. India the market moved up with several new cargoes both for trips to East India and Bangladesh and to China. SMXs rates for Far East trips ranged between 7-18.5K/day (from Arabian Gulf (AG) – West C. Indies (WCI)), short-haul between Arabian Gulf – West C. India at $15-16.5K /day and trips to the Atlantic Basin at $9-10.5K/day.
In the Atlantic Basin and especially the US Gulf continued to move positively thanks to increased interest in trips to the far east with grain or petcoke. SMX rates for Transatlantic trips remained at $16-17.5K/day and to Asia at $24-25.5K/day. The ECSA area declined since there were many vessels available while the number of cargoes was limited. Thus, shipowners were forced to reduce their demands in order to book their ships. The rates of SMXs for trips to S.E. Asia-China moved to $22.5-24K/day and for Transatlantic travel (Mediterranean/Continent) to $20-21.5K/day.
Continent continued to have the same momentum but the increase in capacity supply slightly balanced the overall picture. SMX rates for round-trip local trips moved to $19.5-21K/day, for trips with SCRAP cargoes to the Mediterranean at $18.5-20K/day and to Asia at $24-25.5K/ day. The Mediterranean advanced for another week with particular interest in travel from the Black Sea to Asia. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $27.5-29K/day (Canakkale delivery), to the other side of the Atlantic at $18-19.5K/day and within the Mediterranean at $ 17.5-19 K/day (outside war zones).
In the Handies market, Continent continued to rise with the Baltic boosting the market with more fertilizer cargoes. Rates for the largest vessels in the class, for round trips reached up to $17.5-19K/day, to the Mediterranean with Scrap cargoes at $18-19.5K/day and for Transatlantic trips at $13.5-15K /day.
The Mediterranean saw a fresh rise with shipowners having to choose between cargoes of steel grains, fertilizers and cement. Of particular interest were the grains from Ukraine, which paid more than the other routes. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $16.5-18K/day (delivery at Canakkale), to Continent at $15.5-17K/day (delivery at Canakkale) , to the other side of the Atlantic at $15-16.5K/day (Canakkale delivery) and to Asia at $20.5-22K/day.
On the other side of the Atlantic Basin, in the US Gulf the market rose for another week. The number of vessels available may have remained constant, but the flow of cargoes has pushed rates to higher levels. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic ranged between $15-16.5K/day and to Asia at $19.5-21K/day.
In the East Coast of South America (ECSA) region, the market came under pressure due to the lack of new cargo mainly from Brazil for transatlantic destinations, but dragging the rest of the routes along as well. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $14.5-16K/day and to Asia at $17.5-19K/day.
In Asia the south market started the week strongly. Shipowners have shown to have the upper hand as capacity supply is tight relative to demand. In the north there was more balance, but the dynamics of the south helped this region as well. In the Middle East Gulf and W. C. India, the positive mood was maintained due to the limited number of vessels available. However, activity in the region was not intense, restraining the rise in rates. Far East and NOPAC round trip charterers on larger vessels closed at $8.5-10K/day, from S.E. Asia to China at $10-11.5K/day and from the West C. India to China at $8-9.5K/day.

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