www.TheSeaNation.gr

The dry bulk cargo market recorded significant monthly losses in all sizes, compared to the corresponding period before the holidays. In detail, Capes are down 47.19%, Kamsarmaxes -25.77%, Supramaxes -23.7% and Handies -32.15%, compared to the previous week. Thus, the BDI fell by 888 credits (compared to the previous month) and closed at 1460 credits on Friday, January 12.
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 lost ground as Australian miners were not very active. In addition, the coal loads were also absent. Indexes levels on the Australia-China route (C5) closed Friday at $7.97/tn.
In the Atlantic Basin there has been a slow start to the week with charterers pushing for lower numbers and shipowners not ready to go ahead. In the second half of the week the picture improved mainly in the south where there was an increase in the negotiated rates levels, while in the north the situation stabilized. Indexes on Friday for trips from Brazil to China reached up to $22/tn (for route C3), while rates from Continent to Asia closed at $40.69K/d (for route C9) and Transatlantic round trips at $23.82K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin lack of mineral cargoes in the north and the increase in available vessels led to a further decline in the market. Furthermore, in the south the market came under more pressure from vessels moving from Asia. For example, the rates for the trips from the E. Coast S. Of America (ECSA) to the Far East reached up to $12.5-14.5K/day (Far East delivery), Continent to Asia at $21-23K/day (Continent delivery) and the transatlantic round trips at $13-15K/day (Gibraltar delivery).
On the other hand, no improvements were observed in Asia as there was no substantial support from either Indonesia, Australia or the North Pacific. Indonesia-Far East round trip rates moved to $10.5-12.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in South-East Asia the market was depressed. While there were some coal cargoes, import restrictions in W. C. India reduced demand significantly. SMXs rates for travel between S. E. Asia and the Far East went to 13-14.5K/day. Further north, in the Far East the market progressed without particular changes, with shipowners trying to leave the area, but demand did not offer many opportunities. SMXs round trip NOPAC rates ranged $8-9.5K/day, W. C. India round trips $6.5-8K/day and Atlantic (BH) round trips $5.5- 7K/day.
In the Middle East Gulf and West C. India the market was generally quiet with the only activity coming from W. C. India with some salt and iron ore cargoes. SMX rates for Far East trips ranged from $17-18.5K/day (from Middle East Gulf (MEG) – West C. Indies (WCI)), for short-haul trips between middle East Gulf – West C. India at $12-13.5 K/day and trips to the Atlantic Basin at $ 6-7.5 K/day.
In the Atlantic Basin and especially the US Gulf lost ground with charterers taking a stand-by attitude adding pressure to rates. A positive point is the delays in the Panama Canal which hold back the capacity offered. SMX rates for Transatlantic trips fell to $21.5-23K/day and to Asia $22.5-24K/day. The ECSA area declined due to the increased number of vessels available, which was also boosted by vessels moving into the area, while demand was limited. However at the end of the week we saw an increase in demand which left a ton of optimism for the week ahead. The rates of SMXs for trips to S.E. Asia-China moved to $21.5-23K/day and for Transatlantic trips (Mediterranean/Continent) to $16.5-18K/day.
Continent showed a small increase in cargo flow and combined with the stable number of vessels; we saw an improved picture. However, there are still many vessels that need to be absorbed in order to see an increase in rates. SMX rates for round-trip local trips moved to $16-17.5K/day, for trips with SCRAP cargoes to the Mediterranean at $15.5-17K/day and to Asia at $23.5-25K/ day. The Mediterranean has come under pressure from the increase in open vessels in the area. At the same time the cargo list was small and only some mineral cargoes helped the market. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $24.5-26K/day (Canakkale delivery), to the other side of the Atlantic Basin at $8.5-10K/day and within the Mediterranean at $ 9.5-11 K/day (outside war zones).
In the Handies market, in Continent the market continued to move negatively despite the fact that there were some grain cargoes to the Mediterranean, which were not ready for shipment. Rates for the largest vessels in the class, for round trips reached up to $10-11.5K/day, to the Mediterranean with Scrap cargoes at $13.5-15K/day and for Transatlantic trips at $8.5-10K /day.
The Mediterranean showed interest only on the western side, with increased demand from Morocco. But the Black Sea and Eastern Mediterranean were calm with few new cargoes. Larger vessels rates (above 36K tons DWT) for intra-Med trips moved to $8.5-10K/day (delivery at Canakkale), to Continent at $9-10.5K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $9.5-11K/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 showed slight improvements with some cargoes of grain and scrap. So, some shipowners managed to close some jobs with a premium. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $18.5-20K/day and to Asia at $19-20.5K/day.
The East Coast of South America (ECSA) region continued to decline. The beginning of the week saw more activity reducing the area’s offered capacity. However, the last few days have been calm. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15.5-17K/day and to Asia at $21.5-23K/day.
In Asia, the year started relatively balanced. On the one hand South Australia showed a small increase in rates due to a lack of vessels while there were also some local trips. On the other hand, in the north, the oversupply of vessels put pressure on the market. Further west, in W. C. India steel and fertilizer cargoes boosted demand, while the explosive situation in the Red Sea kept capacity supply tight. Far East and NOPAC round trip charters on larger vessels closed at $8-9.5K/day, from S.SE. Asia to China at $9-10.5K/day and from the West. C. India to China at $12-13.5K/day.

Wishing you and all of your loved one’s health and happiness in the new year

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