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The dry bulk cargo market continued to decline with Capes showing significant losses, followed by the rest of the sizes. More specifically, Capes plunged by 37.4%, Kamsarmaxes -2%, Supramaxes -8% and Handies -2.2%, compared to the previous week. Thus, the BDI fell by 483 credits (compared to the previous week) and closed at 1563 credits on Friday, October 27.
Let’s see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. In Asia, two of the three main charterers may have been in the market, but freight rates fell. There may have been more coal cargoes from Indonesia and Australia but the increase in capacity on offer increased the pressure on the market. Index levels on the Australia-China route (C5) closed on Friday at $8.5/tn.
In the Atlantic Basin and especially in the South, a calm prevailed, as a result of which the shipowners were forced to limit their ideas in order to book a trip. Indexes on Friday for trips from Brazil to China reached up to $21.43/tn (for route C3), while rates from Continent to Asia closed at $37.56K/d (for route C9 ) and Transatlantic round trips at $26.69K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin the market moved in two gears. On the one hand in the North where reduced mobility was observed and on the other hand in the South where we saw a slight increase in activity during the middle of the week. For example, the rates for the trips from the E. Coast S. Americas (ECSA) to the Far East reached up to $13-15K/day (Asia deliver from Continent to Asia at $22-24K/day (Continent delivery) and Transatlantic round trips at $14.5 -16.5 K/day (delivery to Gibraltar).
On the other hand, in Asia the week started strongly with quite a few grain cargoes. But the high concentration of capacity prevented the rise in rates. Indonesia-Far East round trip rates moved to $12-14K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market lost ground as coal cargoes were not enough to support rates levels. SMXs rares for travel between N.A. Asia and the Far East fell to 10.5-12K/day. Further north in the Far East the market fell further as new cargoes were few and the number of vessels in the region increased. SMXs round trip NOPAC rates ranged $8-9.5K/day, India round trips $7.5-9K/day and Atlantic (BH) round trips $6.5- 8K/day.
In the Gulf of the Middle East and the West C India it proceeded without particular changes. However, there was a slight increase in capacity for the next few days. Cargoes to the East Coast and Bangladesh restrained the market decline. SMXs rates for Far East trips ranged from $13.5-15K/day (from Arabian Gulf (AG) – West Indies (WCI)), short-haul between Arabian Gulf – West C India at $11-12.5K /day and trips to the Atlantic Basin at $ 6.5-8 K/day.
In the Atlantic Basin and especially the American Gulf, the week started positively, with enough activity, and continued at the same pace until the middle. However, at the end of the week he presented corrections. SMX rates for transatlantic trips remained at $16-17.5K/day and to Asia at $25-26.5K/day. The ECSA area was under pressure as the volume of new cargo was limited and the weather conditions caused delays in the operation of vessels. The rates of SMXs for trips to N.A. Asia-China moved to $21.5-23K/day and for Transatlantic trips (Mediterranean/Continent) to $16.5-18K/day.
Continent eased slightly as calm prevailed. The fact that the supply of vessels remained stable contained the decline. SMX rates for round-trip local trips moved to $14.5-16K/day, for trips with SCRAP cargoes to the Mediterranean at $15-16.5K/day and to Asia at $19.5-21K/ day. The Mediterranean moved lower due to the lack of cargo mainly from the Eastern Mediterranean and the Black Sea. Indicatively, it is reported that an SMX for a journey from the Mediterranean to Asia closed At $20.5-22K/day (Canakkale delivery), to the other side of the Atlantic at $13-14.5K/day and within the Mediterranean at $ 12-13.5 K/day (outside war zones).
In the Handies market, in Continent the market declined as shipowners' options were limited beyond Baltic fertilisers. Rates for the largest vessels in the class, for round trips reached up to $12.5-14K/day, to the Mediterranean with Scrap cargoes at $14-15.5K/day and for Transatlantic trips at $12.5-14K /day.
The Mediterranean was under pressure as the demand for vessels was limited and according to the data so far, this trend seems to continue for the beginning of November as well. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $11.5-13K/day (delivery at Canakkale), to Continent at $10.5-12K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $10.5-12K/day (delivery to Canakkale) and to Asia at $16-17.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market moved slightly higher. The driver was for another week the East Coast which strengthened the market with many scrap cargoes. Thus, several vessels found some employment by reducing the tonnage supply. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $18.5-20K/day and to Asia at $19-20.5K/day.
In the East Coast of South America (ECSA) region the North moved to better levels than the South which declined due to the increase in the number of vessels available. Thus, the charters 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 market lost ground in both the North and the South as the few cargoes that were traded could not cover the oversupply of vessels. Further west, in the Gulf of the Middle East and W. C. India the market moved at low speeds as few of the market’s cargoes were to be realized. Far East and NOPAC round trip charterers on larger vessels were closing in at $9-10.5K/day, from S.E. Asia to China at $8.5-10K/day and from the West C India to China at $8.5-10K/day.

Disclaimer
This report and the information contained herein it is for general information only and does not constitute a constitute investment advice.