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The dry bulk cargo market declined due to the larger while sizes while the smaller sizes also limited their weekly gains. It is worth noting that only the handies showed a double-digit increase compared to the previous week. More specifically, Capes decreased by 31.71%, Kamsarmaxes -10.12%, Supramaxes +2.16% and Handies +12.84%, compared to the previous week. Thus, the BDI fell by 709 credits (compared to the previous week) and closed at 2483 credits on Friday, December 8.
Let’s see, in more detail, how the dry cargo market by vessels size moved last week, starting with CAPEs. In Asia, the week started strongly following the trend of the previous one, but from the third onwards the absence of the largest charterers from the market led to a large drop in rates. Only at the end of the week was there an improvement in activity holding back further decline. Indexes levels on the Australia-China route (C5) closed on Friday at $11.47/tn.
In the Atlantic Basin both southbound and northbound have come under pressure with supplied capacity remaining steady and the number of cargoes on the market limited. Indexes on Friday for trips from Brazil to China reached up to $28.36/tn (for route C3), while rates from Continent to Asia closed at $63.13K/d (for route C9 ) and Transatlantic round trips at $51.13K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin and in particular in the north there was a drop in activity despite the fact that the number of ships in Continent was limited, since the demand was falling. In the south the picture was similar, with shipowners’ options limited. For example, the rates for the trips from the E. Coast S. America (ECSA) to the Far East rreachedup to $15-17K/day (India delivery), Continent to Asia at $28-30K/day (Continent delivery) and transatlantic round trips at $25.5 -27.5 K/day (delivery to Gibraltar).
On the other hand, in Asia, the week started positively, but in the second half calmness prevailed, resulting in a large drop in the rate market. So many vessel owners preferred to wait in anticipation of a change in the climate. Indonesia-Far East round trip rates moved to $16-18K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market moved lower as both Indonesia and Australia had limited cargo volumes. 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 moved in two gears. Immediately available vessels could not find any cargo while vessels with later dates tried to keep the same rate levels. SMXs round trip NOPAC rates ranged $9-10.5K/day, W. C. India round trips $8.5-10K/day and Atlantic Basin (BH) round trips $6.5- 8K/day.
In the Middle East Gulf and West C. India the market maintained the upward trend from the previous week as there was strong movement between shipowners and charterers. SMXs rates for Far East trips ranged between $16.5-18K/day (from Middle East’s Gulf (MEG) – W. C. Indies (WCI)), for short-haul trips between Arabian Gulf – West C. India at $14-15.5 K/day and trips to the Atlantic Basin at $ 6-7.5 K/day.
In the Atlantic Basin and especially the US Gulf continued to move upwards, but the first signs of fatigue began to appear as grain cargoes were reduced. SMXs rates for Transatlantic trips rose to $40.5-42K/day and to Asia $37.5-39K/day. The ECSA region started the week strongly but as the days progressed there was a stabilization of fares as activity subsided. The rates of SMXs for trips to S.E. Asia-China moved to $26.5-28K/day and for Transatlantic trips (Mediterranean/Continent) to $27.5-29K/day.
Continent has shown upswings with both demand and supplied capacity down. SMX rates for round-trip local trips moved to $24-25.5K/day, for trips with SCRAP cargoes to the Mediterranean at $28.5-30K/day and to Asia at $34.5-36K/ day. The Mediterranean started the week without much action and came under pressure from charterers, while shipowners tried to maintain last week’s numbers. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $27.5-29K/day (Canakkale delivery), to the other side of the Atlantic Basin at $16.5-18K/day and within the Mediterranean at $ 19-20.5 K/day (outside war zones).
In the Handies market, in Continent the market was strengthened with several cargoes, mainly from the Russian Baltic ports. Rates for the largest vessels in the class, for round trips reached $27-28.5K/day, to the Mediterranean with Scrap cargoes at $27.5-29K/day and for Transatlantic trips at $22.5-24K/day day.
The Mediterranean maintained its momentum thanks to last week's strength, despite the fact that the list of mid-December cargoes is limited. Larger vessels rates (above 36K tonnes DWT) for intra-Med trips moved to $17.5-19K/day (delivery at Canakkale), to Continent $14-15.5K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $14.5-16K/day (delivery to Canakkale) and to Asia at $20-21.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market showed stabilizing trends as support from grain cargoes eased and market drivers entered petcoke cargoes. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $27.5-29K/day and to Asia at $29.5-30K/day.
The east Coast of South America (ECSA) region posted the biggest gains compared to the rest of the Atlantic, compared to the previous week. The flow of cargo was continuous but the main factor was the reduced number of vessels available. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $28-29.5K/day and to Asia at $29.5-31K/day.
Στην Ασία η αγορά παρουσίασε περαιτέρω βελτιώσεις, με την Αυστραλία να είναι οδηγός και να ακολουθεί Ινδονησία και ο βορράς. Παράλληλα, η προσφερόμενη χωρητικότητα παρέμεινε σταθερή και περιορισμένη σε σχέση με τη ζήτηση. Προς την Ινδία και τον κόλπο η εικόνα αλλάζει λίγο καθώς τα μετακινούμενα απλή από την ανατολική ακτή της Ινδίας προς τη δυτική πρόσθεσαν πίεση στην αγορά. Οι ναύλοι των μεγαλύτερων πλοίων της κατηγορίας για κυκλικά ταξίδια στην Άπω Ανατολή και στο NOPAC έκλειναν στα $ 8,5-10Κ /ημέρα, από τη Ν.Α. Ασία προς Κίνα στα $ 9-10,5Κ /ημέρα και από τη Δυτ. Ινδία προς την Κίνα στα $ 8-9,5Κ /ημέρα.
In Asia the market showed further improvements, with Australia leading the way followed by Indonesia and the north. At the same time, the capacity offered remained stable and limited in relation to demand. Towards W. C. India and the Gulf the picture changes a bit as the movement of singles from the east coast of W. C. India to the west added pressure to the market. Far East and NOPAC round trip charterers on larger vessels closed at $8.5-10K/day, from S.E. Asia to China at $9-10.5K/day and from the WWestC. India to China at $8-9.5K/day.

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