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The dry bulk cargo market continued positively with the biggest gains being recorded in the Capes and as the sizes got smaller, the positive weekly differences also got smaller. It should be noted that Handies ended the week with small losses. More specifically, Capes increased by 17.29%, Kamsarmaxes +4.5%, Supramaxes +1.17% and Handies -2.85%, compared to the previous week. Thus, the BDI rose by 138 credits (compared to the previous week) and closed at 1545 credits on Friday, February 9.
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 enough optimism. On the one hand the holidays in China and on the other hand the better image from the Atlantic Basin appearance helped this side of the planet as well. In addition mid-week all three major miners were present in the market with new loads. Index levels on the Australia-China route (C5) closed on Friday at $9.46/tn.
In the Atlantic Basin the market moved upwards with strong movement in the South as many charterers started looking for vessels for late February early March. Indexes on Friday for trips from Brazil to China reached up to $24.11/tn (for route C3), while rates from Continent to Asia closed at $42.125K/d (for route C9) and Transatlantic round trips at $22.29K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin grain cargoes to Asia boosted the market to the upside as transatlantic trips were less. The East Coast of South America was also active, mainly for cargoes with loading dates in March. For example, the rates for the trips from the E. Coast Of S. America (ECSA) to the Far East reached up to $12.5-14.5K/day (Asia delivery), Continent to Asia at $22-24K/day (Continent delivery) and transatlantic round trips in $13-15K/day (Gibraltar delivery).
On the other hand, Asia was little changed after a quiet week ahead of the Chinese New Year. Australia and the North Pacific also moved at low speeds. Indonesia-Far East round trip rates ranged between $9-11K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market progressed without particular changes compared to the previous week, both in terms of demand and supply. SMXs rates for travel between S.E. Asia and the Far East went to 10.5-12K/day. Further north, in the Far East the market started the week calmly but in the middle of the week some cargoes appeared and combined with the reduction in available vessels they raised the rates. SMXs round trip NOPAC rates ranged between $7.5-9K/day, W. C. India round trips $5-6.5K/day and Atlantic Basin (BH) round trips $5-6; 5K/day.
In the Middle East Gulf and West C. India the market saw enough activity that led the charter market to higher levels. SMXs rates for Far East trips ranged between $19.5-21K/day (from Middle East’s Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle East Gulf – West C. India at $17-18.5 K/day and trips to the Atlantic Basin at $ 6-7.5 K/day.
In the Atlantic Basin and especially the American Gulf was reinforced with cargoes of grain to Asia. So shipowners found an opportunity to push the rates up. SMXs rates for Transatlantic trips rose to $18.5-20K/day and to Asia $27-28.5K/day. The ECSA region started with several cargoes to Asia, boosting rates. However, as the days went by, the demand was limited and as a result the rates lost ground. The rates of SMXs for trips to S.E. Asia-China moved to $27-28.5K/day and for Transatlantic trips (Mediterranean/Continent) to $16.5-18K/day.
Continent saw improvements as some new cargoes helped rates stabilize. SMX rates for round-trip local trips moved to $16.5-18K/day, for trips with SCRAP cargoes to the Mediterranean at $15.5-17K/day and to Asia at $23.5-25K/ day. The Mediterranean had steady cargo flow and capacity supply eased slightly. 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 Basin 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 thanks to the mid-week loads. So the shipowners were encouraged to ask for higher numbers. Rates for the largest vessels in the class, for round trips reached $11-12.5K/day, to the Mediterranean with Scrap cargoes at $11.5-13K/day and for Transatlantic trips at $10.5-12K /day.
The Mediterranean maintained its momentum due to the positive climate prevailing since the previous week. Thus on most routes the rates were kept at five-digit levels. Larger vessels 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 Basin at $9-10.5K/day (delivery to Canakkale) and to Asia at $17.5-19K/day.
On the other side of the Atlantic Basin, in the US Gulf the market has come under pressure as the number of vessels available gradually increases. However, there is optimism that we will see more shipments in the second half of the month. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged between $11.5-13K/day and to Asia at $16-17.5K/day.
The East Coast of South America (ECSA) region has lost ground due to an increase in vessels moving through the region adding pressure to rates. It looks like this trend will continue as there is an imbalance between supply and demand. Thus, the charterers of larger vessels 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 market started the week positively thanks to some cargoes from Australia absorbing a small part of the available Southeast Asian vessels. In the north, the week was calm as expected ahead of the Chinese New Year. Further west, there was no clear market trend since on the one hand the list of vessels was limited and on the other hand the cargoes that are in the market were not ready to be implemented. Far East and NOPAC round trip charters on larger vessels closed at $7.5-9K/day, from S. E. Asia to China at $9-10.5K/day and from the West C. India to China at $10.5-12K/day.

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