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The dry bulk cargo market saw marginal improvements for another week, thanks to Panamaxes and smaller sizes, while Capes fell slightly, compared to the previous week. More specifically, Capes fell by 4.84%, Kamsarmaxes +9.4%, Supramaxes +3.38% and Handies +0.37%, compared to the previous week. Thus, the BDI rose by only 15 credits (compared to the previous week) and closed at 1518 cred on Friday, January 26.
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 started the week with limited activity and several problems in northern China caused by weather conditions. Mid-week saw a change in mood as it made demands on the market and shipowners stuck to their ideas. Index levels on the Australia-China route (C5) closed on Friday at $7.87/tn.
In the Atlantic Basin and especially in the North Atlantic the market continued the upward trend of the previous week thanks to the continued lack of vessels. However, calm prevailed in northern Continent as most charterers used their vessels. In the South Atlantic Basin there were some bookings at the end of the week at a higher level than the previous one, thus giving optimism to shipowners. Indexes on Friday for trips from Brazil to China reached up to $21.31/tn (for route C3), while rates from Continent to Asia closed at $43.5K/d (for route C9 ) and Transatlantic round trips at $24.43K/day (for route C8).
Regarding Kamsarmaxes, there was strong activity in the Atlantic Basin mainly for loadings in mid-February. So shipowners moving to the area found some employment for their vessels at higher levels than last week. Further north the picture was kind of different as the charterers were more hesitant. For example, rates for the trips from the E. Coast S. America (ECSA) to the Far East reached up to $15.5-17.5K/day (SE Asia delivery), Continent to Asia at $25-27K/day (Continent delivery) and Transatlantic round trips at $15.5-17.5K/day (Gibraltar delivery).
On the other hand, in Asia there were improvements in rates as there was support in the market with several cargoes from the North Pacific, Indonesia and Australia. There was also a particular interest in period charters. Indonesia-Far East round trip rates moved to $10-12K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market started the week quietly but as the days passed the reinforcement with new cargoes improved the overall picture. SMXs rates for trips between S. E. Asia and the Far East went to 12.5-14K/day. Further north, in the Far East the market was flat as there were no particular changes, however some good closures for round trips in the south left optimism for the future. SMXs round trip NOPAC rates ranged between $8-9.5K/day, for India round trips at $5.5-7K/day and Atlantic Basin (BH) round trips at $6-7, 5K/day.
In the Middle East Gulf and West C. India the market continued to rise as it closed last week, thanks to new cargoes entering the market. SMX rates for Far East trips ranged from $19-20.5K/day (from Middle East Gulf (MEG – West C. India (WCI)), for short-haul trips between Middle East Gulf – West C. India at $15-16.5 K/day and trips to the Atlantic at $ 7-8.5 K/day.
In the Atlantic Basin and especially the US Gulf, it was calm as shipowners and charterers preferred to wait ahead of the Chinese New Year. Most shipments were to Asia or within the Gulf. SMX rates for Transatlantic trips remained at $17-18.5K/day and to Asia at $20.5-22K/day. The ECSA region got off to a strong start with rates rising. However, towards the end of the week, the lack of cargo interrupted this rise. The rates of SMXs for trips to S. E. Asia-China moved to $26.5-28K/day and for Transatlantic trips (Mediterranean/Continent) to $18.5-20K/day.
Continent showed a big increase as there were many cargoes which were below the surface. SMX rates for round-trip local trips moved to $17-18.5K/day, for trips with SCRAP cargoes to the Mediterranean at $16.5-18K/day and to Asia at $24.5-26K/ day. The Mediterranean moved higher as a reduced supply of vessels and increased demand helped shipowners raise rates. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $26-27.5K/day (Canakkale delivery), to the other side of the Atlantic Badin at $9.5-11K/day and into the Mediterranean at $ 10-11.5 K/day (outside war zones).
In the Handies market, in Continent the market was boosted by several cargoes of fertilizers from the Russian Baltic ports. Rates for the largest vessels in the class, for round trips reached up to $13-14.5K/day, to the Mediterranean with Scrap cargoes at $15-16.5K/day and for Transatlantic trips at $12.5-14K /day.
The Mediterranean generally remained at the same levels and only in a few cases showed small upward corrections, mainly for some trips from the western Mediterranean. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $10-11.5K/day (delivery at Canakkale), to Continent at $10-11.5K/day (delivery to Canakkale), to the other side of the Atlantic at $9-10.5K/day (delivery to Canakkale) and to Asia at $17-18.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market came under pressure as the list of cargoes was not renewed and at the same time the available vessels increased. In addition, many charterers preferred to use their own vessels for their cargoes. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between $14.5-16K/day and to Asia at $17-18.5K/day.
The East Coast of South America (ECSA) region was quite active with new cargoes with February dates towards the start of the week. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15-16.5K/day and to Asia at $22-23.5K/day.
In Asia, on the one hand, the north, which had a limited volume of cargo, and on the other, the south, which showed a concentration of capacity. However, it should be noted that there has been considerable interest in period charterers. Further west, the mid-east gulf and W. C.India started the week with plenty of action but the last few days have been quiet due to the end-of-week holidays. Far East and NOPAC round trip charterers on larger vessels closed at $8-9.5K/day, from S. E. Asia to China at $9-10.5K/day and from the West C. India to China at $11.5-13K/day.

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