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The dry bulk cargo market continued its upward trend, with a double-digit weekly increase for the largest sizes and a single-digit increase for the smallest. In detail, Capes are up 11.25%, Kamsarmaxes +11.85%, Supramaxes +9.62% and Handies +2.63%, compared to the previous week. Thus, the BDI rose by 190 credits compared to the previous week and closed at 1919 credits on Friday, April 19.
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 was supported by the increasing flow of coal cargoes from Eastern Australia to China as the largest charterers were active. In addition, improving weather conditions helped unblock China’s ports. Index levels on the Australia-China route (C5) closed on Friday at $11.88/tn.
In the Atlantic Basin and especially in Brazil, the week started calmly with a drop in rates. But in the middle of the week, demand returned, changing the mood. So, the shipping market was improving day by day. Indexes on Friday for trips from Brazil to China reached up to $27.04/tn (for route C3), while rates from Continent to Asia closed at $48.5K/d (for route C9 ) and Transatlantic round trips at $15.14K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin and especially in the north the lack of readily available vessels has led to an increase in rates for April loadings. In addition, demand was increased for transatlantic travel. And in the south there was a volume of closures with vessels closing in the Pacific achieving some premium. For example, the1rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $18-20K/day (Asia delivery), Continent to Asia at $27.5-29.5K/day (Continent delivery) and transatlantic round trips in $15.5-17.5K/day (Gibraltar delivery).
On the other hand, in Asia the market seemed to receive positive effects from the good image of the Atlantic Basin with the result that rates levels have upward trends. Indonesia-Far East round trip rates moved to $15-17K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed improvements thanks to a steady flow of coal cargoes from Indonesia for the end of the month and beginning of May. So ship-owners who had the luxury of time could see better numbers. SMXs rates for trips between S.E. Asia and the Far East went to 17-18.5K/day. Further north, in the Far East the market was boosted by more steel cargoes. Also of particular interest were the trips to the Atlantic. SMXs rates for round trips to NOPAC moved to $12.5-14K/day, for trips to W. C. India at $11.5-13K/day and round trips across the Atlantic Basin (BH) to $12.5- 14K/day.
In the Gulf Middle East and West C. India we did not see much action, despite expectations, however some closes reached higher levels than the previous week. SMXs rates for Far East trips ranged from $16-17.5K/day (from Middle East Gulf AMEG) – West C. India (WCI)), for short-haul trips between Middle East Gulf – West C. Indies at $12.5-14 K/day and trips to the Atlantic at $5.5-7 K/day.
In the Atlantic Basin and especially in the US Gulf we saw a slow start to the week as activity was limited. However, the rest of the week moved up thanks to an increase in cargo flow from the East Coast. However, the improvement of the times in the Panama Canal is expected to supply the market with more vessels in the next period. SMXs rates for transatlantic trips reached up to $14.5-16K/day and to Asia $23-24.5K/day. The ECSA area saw more activity mainly at the beginning of the week, absorbing a large proportion of the available vessels. However, the differences were not large in rates. The rates of SMXs for trips to the S.E. Asia-China moved to $27.5-29K/day and for Transatlantic trips (Mediterranean/Continent) to $21-22.5K/day.
Continent proceeded quietly and the only interest came from scrap cargoes. But there is optimism that there will be a rise in demand at the end of the month and early next. 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 $26.5-28K/ day. The Mediterranean showed strong movement as there was some cargo for the end of April which improved the mood at the end of the week. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $27-28.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $11.5-13K/day and within the Mediterranean at $ 12.5-14 K/day (outside war zones).
In the Handies market, in Continent the market progressed without particular changes as the supply of capacity may have been limited but the demand was not enough to lead to an increase in rates. 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 $13-14.5K/day and for Transatlantic trips at $11-12.5K /day.
The Mediterranean was active. The supply of vessels fluctuated at the same levels, however there was enough interest from the charterers. Thus, the rate levels improved even marginally. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $11.5-13K/day (delivery at Canakkale), to Continent at $10-11.5K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $10-11.5K/day (Canakkale delivery) and to Asia at $16.5-18K/day.
On the other side of the Atlantic Basin, in the American Gulf the market showed positive signs for the second half of the month. We have already seen more new cargoes and ship-owners have increased their ideas. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between $13.5-15K/day and to Asia at $17.5-19K/day.
The East Coast of South America (ECSA) region was up thanks to increased cargo flow in the first half of the week and continued at the same pace for the rest of the week. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent– Mediterranean) moved to $18-19.5K/day and to Asia at $22-23.5K/day.
In Asia the market progressed positively as demand strengthened both in the north and in the south. The renewal of the list of cargoes from Australia and Indonesia helped to improve the mood. In contrast in the W. C. India and Gulf market we saw a limited number of cargoes and a concentration of capacity. Far East and NOPAC round trip charterers on larger vessels closed at $11-12.5K/day, from S.E. Asia to China at $12.5-14K/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