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Last updateΔευ, 01 Ιουλ 2024 7am

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Capes catapulted BDI into the dry cargo market

Bulk carrier 1

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios-Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market recorded an impressive increase compared to the previous week thanks to Capes which almost doubled their indexes, while the rest of the figures showed a double-digit weekly increase. More specifically, Capes are up 84.26%, Kamsarmaxes +13.41%, Supramaxes +16.42% and Handies +15.34%, compared to the previous week. Thus, the BDI rose by 1090 credits (compared to the previous week) and closed at 3192 credits on Friday, December 1st.
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 big diversification to the upside as all the big charterers had a presence on the Western Australia – China line. The rest of the week moved at these rates but at lower speeds. Index levels on the Australia-China route (C5) closed on Friday at $13.11/tn.
In the Atlantic Basin the week started positively for the north while the south was quieter. But the reduced supply of capacity relative to demand and the limited number of moving vessels from the Pacific has led to a rise in rates in all regions. Indexes on Friday for trips from Brazil to China reached up to $34.44/tn (for route C3), while rates from Continent to Asia closed at $92K/d (for route C9) and Transatlantic round trips at $75.75K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic and particularly in the north the market showed new gains thanks to the reduced supply of vessels, while there was also strong movement for transatlantic trips. On the contrary, the south was not so active, but influenced by the broader picture, it closed the week on the upside. For example, the rates for the trips from the E. Coast S. Of America (ECSA) to the Far East reached up to $16.5-18.5K/day ( W. C. India delivery), Continent to Asia at $31-33K/day (Continent delivery) and transatlantic round trips to $28-30K/day (delivery to Gibraltar).
On the other hand, in Asia the market was driven by the limited available capacity and the satisfactory flow of coal cargoes from Indonesia and Australia. Thus the rates moved higher compared to the previous week. Indonesia-Far East round trip rates moved to $15-17K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed a weekly increase as there was support from both Indonesia and Australia with more cargoes. SMXs rates for travel between S.E. Asia and the Far East went to 14.5-16K/day. Further north, in the Far East the market advanced positively with the North Pacific driving rates to higher levels. SMXs rates for NOPAC round trips moved to $10-11.5K/day,W. C. India round trips to $9-10.5K/day and Atlantic Basin (BH) round trips to $6.5- 8K/day.
In the Middle East Gulf and West C. India the market showed improvement after a period of decline. This rise is not so much due to the improvement in demand in the region but to the wider rise in the rest of the regions. SMXs rates for Far East trips ranged between 2.5-14K/day (from Middle East’s Gulf (MEG) – West C. Indies (WCI)), short-haul between Middle East’s Gulf – West C. India at $11.5-13K /day and trips to the Atlantic Basin at $ 6-7.5 K/day.
In the Atlantic Basin and especially the American Gulf continued to run. The flow of cargo was constant while eerily long delays in the Panama Canal kept the number of available vessels limited. SMX rates for Transatlantic trips rose to $35.5-37K/day and to Asia $34.5-36K/day. The ECSA region continued its upward trend as demand was strengthened while the number of vessels available remained low. It should be noted that many vessel owners chose to move from Africa to the American gulf rather than the other way around. The rates of SMXs for trips to S. E. Asia-China moved to $27.5-29K/day and for Transatlantic travel (Mediterranean/Continent) to $24.5-26K/day.
Continent showed further improvements with strong activity from both charterers and shipowners. SMX rates for round-trip local trips moved to $24.5-26K/day, for trips with SCRAP cargoes to the Mediterranean at $26.5-28K/day and to Asia at $28.5-30K/ day. The Mediterranean showed an improved picture last week, with more mobility from charterers who preferred to move to prevent further rise in rates. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $28.5-30K/day (Canakkale delivery), to the other side of the Atlantic at $18-19.5K/day and within the Mediterranean at $ 19.5-21 K/day (outside war zones).
In the Handies market, in Continent the market was strengthened with a large flow of new loads mainly from the Baltic. Thus the shipowners had no difficulty in finding employment for their vessels and even in higher numbers. Rates for the largest vessels in the class, for round trips reached $ 22-23.5K/day, to the Mediterranean with Scrap cargoes at $ 22.5-24K/day and for Transatlantic trips at $ 18.5-20K / day.
The Mediterranean showed an increase in all routes and it seems that it will continue at this pace until the end of the year. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $14.5-16K/day (delivery at Canakkale), to Continent at $11-12.5K/day (delivery at Canakkale), to the other side of the Atlantic at $11.5-13K/day (delivery to Canakkale) and to Asia at $18-19.5K/day.
On the other side of the Atlantic, in the US Gulf the market continued to be the big star as demand was strong and the supply of vessels was not enough to cover it. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between 5.5-27K/day and to Asia at $26.5-28K/day.
The East Coast of South America (ECSA) region showed significant gains compared to the previous week with many new cargoes increasing competition among charterers. Thus, the charterers of larger vessels the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $25-26.5K/day and to Asia at $26.5-28K/day.
In Asia the market advanced with gains, mainly due to Southeast Asia and the large cargo list from Indonesia and Australia. At the same time there was a strong interest in vessels in period. The north followed the upward trend despite the fact that there was a concentration of capacity. Further west, to W. C. India and the Middle East Gulf demand was renewed with some new cargoes helping rates to take off. Far East and NOPAC round trip charterers on larger vessels were closing in at $8.5-10K/day, from N.A. Asia to China at $10.5-12K/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

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