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Last updateΔευ, 01 Ιουλ 2024 7am

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Profits of all sizes. Panamaxes stood out

Bulk carrier 1

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios-Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market rose further with all sizes showing improvements, while Panamaxes posted a weekly gain of more than 20%. More specifically, Capes rose by 6.71%, Kamsarmaxes +22.47%, Supramaxes +7.1% and Handies +0.83%, compared to the previous week. Thus, the BDI rose by 177 credits (compared to the previous week) and closed at 1820 credits on Friday, November 17.
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 got off to a slow start due to the Diwali holiday in Singapore. However, the continuation of the week was positive with many new cargoes and the main driver being coal cargoes from Southeast Asia and Australia. There were also shipments from Japan. But at the end of the week, the bad weather conditions caused several problems in the operation of the ports. Index levels on the Australia-China route (C5) closed on Friday at $10.22/tn.
In the Atlantic Basin there was quite a bit of movement with the south showing more interest. The week continued at the same pace with several closes at better levels than the previous week, and the Brazil China route showing strong activity. Indexes on Friday for trips from Brazil to China reached up to $22.59/tn (for route C3), while rates from Continent to Asia closed at $40.65K/d (for route C9 ) and Transatlantic round trips at $34.06K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic Basin and especially in the north demand was increased thanks to cargoes of minerals, while cargoes of grain from the Gulf also had a steady flow. Of particular interest were the trips from the Baltic, which paid more than the transatlantic trips. As far as the south is concerned, it followed the general trend of the North Atlantic. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $29-31K/day (ECSA delivery), Continent to Asia at $26-28K/day (Continent delivery) and transatlantic round trips at $22.5 -24.5 K/day (delivery to Gibraltar).
On the other hand, in Asia the week started on Tuesday due to the holiday and most routes saw gains, with the North Pacific and Australia leading the race. Indonesia-Far East round trip rates ranged between $11.5-14.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in SE Asia the market moved up thanks to coal cargoes? From Indonesia. SMXs rates for travel between S.E. Asia and the Far East went to 13.5-15K/day. Further north, in the Far East the market was particularly active with several loads heading south or further west. SMXs round trip NOPAC rates ranged between $8-9.5K/day, India round trips $7-8.5K/day and Atlantic (BH) round trips $6-7; 5K/day.
In the Middle East Gulf and West C. Indies the market continued to decline, although vessel supply remained stable. However, the improvement of the climate in the rest of Asia is expected to positively affect the region. SMXs rates for Far East trips ranged between 0.5-12K/day (from Middle East’s Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle East Gulf – West C. India at $8.5-10K /day and trips to the Atlantic Basin at $ 4.5-6 K/day.
In the Atlantic Basin especially the American Gulf, new highs were recorded, especially for vessels with late November dates. It appears that delays in the Panama Canal have given the advantage to shipowners who are readily available in the Gulf. SMXs rates for Transatlantic trips rose to $30-31.5K/day and to Asia $32-33.5K/day. The ECSA region showed significant improvements as demand was up in both the North and the South and there are still plenty of open loads for the month. The rates of SMXs for trips to S. E. Asia-China moved to $23-24.5K/day and for Transatlantic trip (Mediterranean/Continent) to $20.5-22K/day.
Continent appeared to be stabilizing as there were more cargoes for readily available vessels, while supply was not enough to cover them. SMX rates for round-trip local trips moved to $15-16.5K/day, for trips with SCRAP cargoes to the Mediterranean at $17.5-19K/day and to Asia at $21-22.5K/ day. The Mediterranean moved positively, after a long period of pressure. The main reason for this change was the very good image of the American Gulf which led many vessels from the Western Mediterranean to move to the area. Indicatively, it is reported that an SMX for a Mediterranean to Asia trip closed at $19-20.5K/day (Canakkale delivery), to the other side of the Atlantic at $10.5-12K/day and within the Mediterranean at $ 12-13.5 K/day (outside war zones).
In the Handies market, in Continent the market moved positively as after weeks of inactivity there were more loads. However, there is still a long way to go before we see an increase in rates, since there are many vessels available in the market. Rates for the largest vessels in the class, for round trips reached up to $14.5-16K/day, to the Mediterranean with Scrap cargoes at $15-16.5K/day and for Transatlantic trips at $11.5-13K/day day.
The Mediterranean experienced climate change. The increase in cargoes and the absorption of many readily available vessels was the reason for this improvement. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $8.5-10K/day (delivery at Canakkale), to Continent at $8-9.5K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $8-9.5K/day (delivery to Canakkale) and to Asia at $13.5-15K/day.
On the other side of the Atlantic, in the US Gulf the market went ahead smoothly with the flow of cargoes being continuous. However, there is a concentration of capacity, a fact that is expected to create pressure in the near future. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $24-25.5K/day and to Asia at $23-24.5K/day.
The East Coast of South America (ECSA) region saw several improvements as reduced capacity allowed rates to rise. At the same time, there was an improvement in the flow of cargo to the North and South. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $14-15.5K/day and to Asia at $18.5-20K/day.
In Asia the Far East and Indonesia showed increased demand giving a boost to the numbers. But an oversupply of capacity held back the rise. Further west, in the Gulf of the Middle East and W. C. India, calm prevailed, with shipowners anxiously seeking employment for their vessels Far East and NOPAC round trip charterers on larger vessels closed at $7.5-9K/day, from S. E. Asia to China at $8.5-10K/day and from the West. 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

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