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The dry bulk cargo market closed marginally higher with all metrics registering small weekly changes. In detail, Capes rose by 0.54%, Kamsarmaxes -0.33%, Supramaxes +2.86% and Handies +1.79%, compared to the previous week. Thus, the BDI increased by 16 credits (compared to the previous week) and closed at 1945 credits on Friday, October 13.
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 a lot of promise but it was dashed from mid-week onwards as demand was not enough to support rates. Index levels on the Australia-China route (C5) closed Friday at $10.41/tn.
In the Atlantic Basin, the north stood out, where the flow of cargo was satisfactory while the number of available vessels was limited. On the contrary, the south suffered losses as it came under heavy pressure towards the end of the week. Indexes on Friday for trips from Brazil to China reached $25.73/tn (for route C3), while rates from Continent to Asia closed at $46.53K/d (for route C9 ) and Transatlantic round trips at $38.17K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic and in particular in the north there was a downward trend in rates for transatlantic trips and voyages to Asia despite the fact that there was also a reduction in capacity supply. A similar picture in South America, with rates losing ground due to reduced demand. For example, the rates for the trips from the E. Coast S. Americas (ECSA) to the Far East reached $14-16K/day (Asia delivery), Continent to Asia at $22-24K/day (Continent delivery) and transatlantic round trips at $14-16 K/day (delivery to Gibraltar).
On the other hand, in Asia the market was strengthened with many new cargoes, both from Indonesia and Australia, while the flow of cargoes from the North Pacific was also stable. Indonesia-Far East round trip rates moved to $14-16K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market strengthened with more coal cargoes from India to China, while trips from Australia also appear to be in balance. SMXs rates for travel between S.E. Asia and the Far East fell to 13-14.5K/day. Further north, in the Far East the market appears to have returned from the holidays with plenty of activity. So the week started off strong but that didn’t last long as the pace dropped for the rest of the week. SMXs rates for NOPAC round trips ranged from $9-10.5K/day, W. C. India round trips from $9-10.5K/day and Atlantic (BH) round trips from $8.5- 10K/day.
In the Middle East Gulf and West C. India the market continued to decline as demand was subdued, causing charterers to impose their ideas. SMXs rates for Far East trips ranged from $12.5-14K/day (from Arabian Gulf (AG) – West C. India (WCI)), short-haul between Arabian Gulf – West C. India at $11-12.5K /day and trips to the Atlantic Basin at $6-7.5K/day.
In the Atlantic Basin and especially the US Gulf it was a bit nervous. On the one hand trips to Asia helped the market while on the other hand transatlantic trips did not show any improvement. SMX rates for Transatlantic trips fell to $15.5-17K/day and to Asia $24.5-26K/day. The ECSA area was kept at the same levels. There may have been an improvement in demand for transatlantic trips and to Asia, but the increase in capacity on offer prevented some rise in rates. The rates of SMXs for trips to N.A. Asia-China moved to $23.5-25K/day and for Transatlantic trips (Mediterranean/Continent) to $18.5-20K/day.
Continent proceeded without particular changes. Demand remains limited while the number of available vessels has increased. SMX rates for round-trip local trips moved to $15.5-17K/day, for trips with SCRAP cargoes to the Mediterranean at $16.5-18K/day and to Asia at $22-23.5K/ day. The Mediterranean advanced on the same levels due to improved demand. Thus there was a balance between demand and supply. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $24-25.5K/day (Canakkale delivery), to the other side of the Atlantic at $13-14.5K/day and within the Mediterranean at $ 12.5-14 K/day (outside war zones).
In the Handies market, in Continent e market started the week with shipowners looking for some work. The week followed the same pattern with rates falling. Rates for the largest vessels in the class, for round trips reached $16-17.5K/day, to the Mediterranean with Scrap cargoes at $16-17.5K/day and for Transatlantic trips at $13.5-15K /day.
The Mediterranean has come under pressure as cargo shortages have led more and more shipowners to take a risk and look for some cargo from Ukraine. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $12.5-14K/day (delivery at Canakkale), to Continent at $11.5-13K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $12.5-14K/day (Canakkale delivery) and to Asia at $17.5-19K/day.
On the other side of the Atlantic Basin , in the US Gulf the market continued to rise mainly due to a reduction in the capacity offered, as many vessels preferred to move further south. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $15-16.5K/day and to Asia at $17.5-19K/day.
In the East Coast of South America (ECSA) region the market improved further thanks to a continuous flow of cargo and a limited number of vessels. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $16-17.5K/day and to Asia at $19-20.5K/day.
In Asia, all interest was focused on the Southeast market, as demand improved mainly for larger vessels. There was also the alternative of Australia. In W. C. India the market remained calm and only some cargoes from the Gulf to Africa generated some interest. Far East and NOPAC round trip charterers on larger vessels closed at $10.5-12K/day, from N.A. Asia to China at $9.5-11K/day and from the West C. India to China at $8-9.5K/day.