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The dry bulk cargo market continued to rise with larger sizes showing a better picture, while Handies closed in the red. In detail, Capes are up 6.89%, Kamsarmaxes +4.5%, Supramaxes +1.48% and Handies -0.1%, compared to the previous week. Thus, the BDI increased by 101 credits (compared to the previous week) and closed at 2046 credits on Friday, October 20.
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 got off to a strong start last week, despite the fact that not all major charterers were in the market. However, in the second half of the week the rates dropped and finally the week closed with small weekly gains. Index levels on the Australia-China route (C5) closed on Friday at $10.7/tn.
In the Atlantic Basin and especially in the north there was a big increase in rates for trips to Asia with the supply of vessels being kept at low levels. Further south, balance prevailed with rates remaining at the same levels as compared to the previous week. Indexes on Friday for trips from Brazil to China reached $25.77/tn (for route C3), while rates from Continent to Asia closed at $52.5K/d (for route C9 ) and Transatlantic round trips at $40.19K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin the market was strengthened with several cargoes of ore and grain for both transatlantic trips and trips to Asia and loadings for the first half of November. For example, the rates for the trips from the E. Coast S. America (ECSA) to the Far East reached up to $12.5-14.5K/day (Asia delivery), Continent to Asia at $22.5-24.5K/day (Continent delivery) and Transatlantic round trips at $16.5-18.5K/day (Gibraltar delivery).
On the other hand, in Asia activity was subdued and only some cargoes from Indonesia showed interest. However, it should be noted that even smaller vessels sought to close some of these cargoes. Indonesia-Far East round trip rates moved to $13.5-15.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market lost ground as coal cargoes were considerably lower than last week. So many ship owners were considering moving to the Atlantic. SMXs rates for travel between S.E. Asia and the Far East fell to 12-13.5K/day. Further north, in the Far East the market progressed without any interest this week as the list of cargoes did not offer optimism to shipowners. SMXs round trip NOPAC rates ranged $8.5-10K/day, India round trips $8-9.5K/day and Atlantic (BH) round trips $8-9; 5K/day.
In the Middle East Gulf and West C. India the market remained flat as charterers pushed for lower rates while shipowners showed no willingness to budge on their ideas. SMXs rates for Far East trips ranged from $13.5-15K/day (from Arabian Gulf (AG) – West C. India (WCI)), short-haul between Arabian Gulf – West C. India at $11.5-13K /day and trips to the Atlantic Basin at $ 6.5-8 K/day.
In the Atlantic Basin and especially the American Gulf started the week strongly with enough activity mainly for trips to Asia. Towards the end of the week the charterers took a standstill in order to contain the increase in rates. SMX rates for transatlantic trips remained at $18-19.5K/day and to Asia at $26.5-28K/day. The ECSA region has been quiet with rates falling despite the fact that capacity supply is tight until the end of October. The rates of SMXs for trips to S.E. Asia-China moved to $23.5-25K/day and for Transatlantic trips (Mediterranean/Continent) to $17.5-19K/day.
Continent showed minor corrections due to the lack of new opportunities for shipowners. However, the losses were marginal while the positive climate in the region was maintained. SMX rates for round-trip local trips moved to $16-17.5K/day, for trips with SCRAP cargoes to the Mediterranean at $17.5-19K/day and to Asia at $24-25.5K/ day. The Mediterranean came under pressure as grain shortages were evident and only some clinker cargoes showed interest. According to the data so far, this is how the period seems to go until the end of the month. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $22.5-24K/day (Canakkale delivery), to the other side of the Atlantic Basin at $14-15.5K/day and within the Mediterranean at $ 13-14.5 K/day (outside war zones).
In the Handies market, in Continent the market was balanced in terms of demand and supply. On the one hand, the flow of cargo was stable, while on the other hand, the number of vessels in the area did not change. Rates for the largest vessels in the class, for round trips reached $14.5-16K/day, to the Mediterranean with Scrap cargoes at $15-16.5K/day and for Transatlantic trips at $13.5-15K /day.
The Mediterranean retreated, since apart from some cargoes of grain and clinker there was no other interest in the area. Larger vessel rates (above 36K tonnes DWT) for intra-Med trips moved to $11.5-13K/day (delivery at Canakkale), to Continent at $11-12.5K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $11.5-13K/day (delivery at Canakkale) and to Asia at $16.5-18K/day.
On the other side of the Atlantic Basin, in the US Gulf the market was boosted by activity on the East Coast as there were some scrap cargoes, while open vessels in the region are also less than demand. It is worth noting that shipowners were demanding higher rates for trips to the Mediterranean. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $15.5-17K/day and to Asia at $17.5-19K/day.
In the East Coast of South America (ECSA) region the market showed a slight decline. On the one hand the south which was sluggish and on the other the north which offered many alternative options to ship owners. Thus, the charterers of larger vessels on the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15.5-17K/day and to Asia at $18-19.5K/day.
In Asia, the week started exactly as the previous one ended, but soon took a downward turn as new cargoes from both the North and the South were absent. In the Middle East Gulf, the market saw a slight increase in rates thanks to reduced offered capacity from the West C. India. Far East and NOPAC round trip charterers on larger vessels were closing in at $10-11.5K/day, from S.E. Asia to China at $9.5-11K/day and from the West C. India to China at $9-10.5K/day.

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