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The dry bulk cargo market continued to be positive with Panamaxes recording the largest weekly increases and the rest of the sizes maintaining their positive trend. More specifically, Capes increased by 2.82%, Kamsarmaxes +9.09%, Supramaxes +1.71% and Handies +0.62%, compared to the previous week. Thus, the BDI rose by 65 credits (compared to the previous week) and closed at 1610 credits on Friday, February 16.
Let's see, in more detail, how the dry bulk cargo market by vessels size moved last week, starting with CAPEs. Asia started the week subdued due to the Chinese New Year. Later in the week we saw all three major charterers with mineral cargoes active but without significantly affecting rates. However, at the end of the week the indexes closed positively. Index levels on the Australia-China route (C5) closed on Friday at $9.7/tn.
In the Atlantic Basin the market had a quiet start last week due to the holidays in Asia. As the days went by, the situation seemed to stabilize, especially for the Brazil-China route. Indexes on Friday for trips from Brazil to China reached up to $24.2/tn (for route C3), while rates from Continent to Asia closed at $44.94K/d (for route C9 ) and Transatlantic round trips at $22.07K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin Latin America took the lead due to increased activity for vessels arriving in March. Conversely, in the north, the accumulation of excess capacity put pressure on rates. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $15-17K/day (Asia delivery), Continent to Asia at $23.5-25.5K/day (Continent delivery) and transatlantic round trips at $13.5-15.5K/day (Gibraltar delivery).
On the other hand, in Asia there were no clear indications of where the market would turn. But there was general optimism as the main charterers were present in the market. Indonesia-Far East round trip rates moved to $11-13K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market moved upwards as charterers from Indonesia and Australia were quite active. SMXs rates for trips between S. E. Asia and the Far East went to 10.5-12K/day. Further north, in the Far East the market is back in a festive mood from the holidays. Thus several vessels found some employment. SMXs rates for NOPAC round trips were $7.5-9K/day, for W. C. India round trips at $5-6.5K/day and Atlantic Basin (BH) round trips at $5.5- 7K/day.
In Middle’s East Gulf and West C. India the market moved in two gears, on the one hand the Gulf moved lower due to the lack of mobility. On the other hand W. C.India had more cargoes keeping the rates at the same levels. SMXs rates for Far East trips ranged between $19-20.5K/day (from Middle’s East Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle East Gulf – W. C. Indies at $16-17.5 K/day and trips to the Atlantic Basin at $ 6-7.5 K/day.
In the Atlantic Basin and especially the American Gulf declined at the end of the week despite its optimistic start with some good closes. SMXs rates for Transatlantic trips reached up to $18.5-20K/day and to Asia $29-30.5K/day. The ECSA region slowed down due to Chinese New Year and Carnival. Despite the fact that there were not many new cargoes the limited capacity kept the rates stable. The rates of SMXs for trips to S. E. Asia-China moved to $27-28.5K/day and for Transatlantic trips (Mediterranean/Continent) to $17.5-19K/day.
Continent maintained its momentum as the number of available vessels remained stable while demand slowly and steadily increased. SMX rates for round-trip local trips moved to $16.5-18K/day, for trips with SCRAP cargoes to the Mediterranean at $17.5-19K/day and to Asia at $24.5-26K/ day. The Mediterranean showed a lot of activity after there were some closures, while cargoes were also renewed. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $21.5-23K/day (Canakkale delivery), to the other side of the Atlantic at $10.5-12K/day and into the Mediterranean at $ 12-13.5 K/day (outside war zones).
In the Handies market, in Continent the market the market started the week calmly but as days passed more loads appeared from northern France and the Baltic. Rates for the largest vessels in the class, for round trips reached up to $12-13.5K/day, to the Mediterranean with Scrap cargoes at $12.5-14K/day and for Transatlantic trips at $11.5-13K /day.
The Mediterranean maintained its upward trend as there was a steady flow of cargoes. In addition, the hypnotic course of the American Gulf caused shipowners to ask for a premium. Larger vessel rates (above 36K tonnes DWT) for intra-Med trips moved to $11-12.5K/day (delivery at Canakkale), to Continent at $11-12.5K/day (delivery to Canakkale), to the other side of the Atlantic Basin at $10-11.5K/day (delivery to Canakkale) and to Asia at $18.5-20K/day.
On the other side of the Atlantic Basin, in the US Gulf the market came under pressure as cargoes were very short compared to vessels. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between $10.5-12K/day and to Asia at $15-16.5K/day.
The East Coast of South America (ECSA) region started the week with several new orders but the follow-up was not commensurate as available vessels increased. 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 $19-20.5K/day.
In Asia the market has returned from the holidays and as expected activity has returned with it. There were more cargoes from Australia and the North Pacific, while the supply of capacity started to decrease. Further west in the Gulf of the Middle East and W. C. India there was an equally good picture. Far East and NOPAC round trip charterers on larger vessels were closing in at $9-10.5K/day, from S. E. Asia to China at $10.5-12K/day and from the West C. India to China at $11-12.5K/day.

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