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The dry bulk cargo market showed Improvements thanks to Capes which showed a weekly increase of more than 20%. Panamaxes and Supramaxes also saw an increase, while Handies declined. In detail, Capes are up 21.39%, Kamsarmaxes +5.66%, Supramaxes +2.17% and Handies -6.27%, compared to the previous week. Thus, the BDI rose by 181 credits (compared to the previous week) and closed at 1643 credits on Friday, November 10.
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 had a strong start to the week with several new cargoes from the major charterers leading to an increase in rates by mid-week. Then pace eased and rates stabilized. Index levels on the Australia-China route (C5) closed on Friday at $10/tn.
The Atlantic was quiet for most of the week and it was only towards the end of the week that there were some signs of recovery, however there was a wide gap between charterer and shipowner bids. Indexes on Friday regarding trips from Brazil to China reached up to $21.99/tn (for route C3), while rates from Continent to Asia closed at $41.22K/d (for route C9 ) and Transatlantic round trips at $29.5K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic and especially in the north, the week started with several promises of intense activity and several requests from the East Coast and the American Gulf. At the same time, Continent and the Western Mediterranean had a limited supply of capacity. In the South the market continued at higher levels due to cargoes with November dates, since available vessels are limited. For example, rates for the trips from the E. Coast S. Americas (ECSA) to the Far East reached up to $13-15K/day (Asia delivery), 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, Asia moved in two gears as on the one hand Indonesia and Australia showed satisfactory demand, while the north was calm. Indonesia-Far East round trip rates ranged between $8-11K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed improvements as Indonesia was particularly active with several shipments to China and India. SMXs rates for travel between S.E. Asia and the Far East went to 11.5-13K/day. Further north, in the Far East the market appeared to stabilize mainly due to the good image of the south. SMXs round trip NOPAC rates ranged between $7-8.5K/day, W. C. India round trips $6-7.5K/day and Atlantic (BH) round trips $6-7; 5K/day.
In the Middle East Gulf and West C. India the market moved down with few options for shipowners. This pressure is also expected to be maintained as we approach the Diwali holiday. SMXs rates for Far East trips ranged between $10-11.5K/day (from Middle East’s Gulf (MEG) – West C. India (WCI)), short-haul between Middle East’s Gulf – West C. India at $7.5-9K /day and trips to the Atlantic Basin at $ 4.5-6 K/day.
In the Atlantic Basin and especially the American Gulf saw a new rise as the demand for loadings in mid-November could not be met with the existing ships. So, the shipowners imposed their ideas. SMXs rates regarding Transatlantic trips rose to $23-24.5K/day and to Asia $30-31.5K/day. The ECSA area progressed upwards with several new cargoes from both the North and the South while the capacity offered also decreased. The rates of SMXs for trips to S. E. Asia-China moved to $20.5-22K/day and for Transatlantic trips (Mediterranean/Continent) to $17.5-19K/day.
Continent maintained its downward trend as activity was limited. Also, according to the data so far, the overall picture is not expected to improve until the middle of the month. SMX rates for round-trip local trips moved to $15-16.5K/day, for trips with SCRAP cargoes to the Mediterranean at $16.5-18K/day and to Asia at $22-23.5K/ day. The Mediterranean remained under pressure. More loads may have appeared but the oversupply left no room for improvement. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $19-20.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $9.5-10K/day and into the Mediterranean at $ 10-11.5 K/day (outside war zones).
In the Handies market, in Continent the market declined further. Mid-week there were some grain shipments from the Baltic and northern Continent, but not enough to reverse the downward trend. Rates for the largest vessels in the class, for round trips reached up to $10.5-12K/day, to the Mediterranean with Scrap cargoes at $12-13.5K/day and for Transatlantic trips at $9.5-11K /day.
The Mediterranean continued to decline with most activity seen at the start of the week as more shipowners preferred to close their vessels even at lower numbers. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $6.5-8K/day (delivery at Canakkale), to Continent at $7-8.5K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $7-8.5K/day (Canakkale delivery) and to Asia at $12.5-14K/day.
On the other side of the Atlantic Basin, in the US Gulf the market gained even more ground as the cargo flow was continuous and the offered capacity moved to low levels. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $20-21.5K/day and to Asia at $21-22.5K/day.
The East Coast of South America (ECSA) region continued to decline. The south continued to suffer from a lack of cargo and the north was pressured by vessel’s moving from the bay. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $13-14.5K/day and to Asia at $14.5-16K/day.
In Asia there were further losses in North and South as cargo flow was limited. Australia and the CIS region showed some loads but not enough to really help the market. A similar picture in W. C. India and the Middle East Gulf along with little new cargo. However, the picture was slightly better for the larger vessels in the class. Far East and NOPAC round trip charterers on larger vessels closed at $7-8.5K/day, from S. E. Asia to China at $7.5-9K/day and from the West C. India to China at $6.5-8K/day.

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