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The dry bulk cargo market fell last week, with Capes weighing on the overall Index, posting double-digit weekly declines, and Kamsarmaxes in the red, if only marginally. On the contrary, the smaller sizes continued with gains. In detail, Capes fell by 23.49%, Kamsarmaxes -2%, Supramaxes +7.22% and Handies +1.39%, compared to the previous week. Thus, the BDI fell by 198 credits compared to the previous week and closed at 1721 credits on Friday, April 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 limited activity at the start of the week pressured rates. However, as days went by the picture improved as the bigger miners were active, thus limiting the losses. Index levels on the Australia-China route (C5) closed on Friday at $9.9/tn.
In the Atlantic Basin market showed downward trends both in the north and in the south since the volume of cargoes did not favor the ship owners. Only at the end of the week there were some signs of recovery, but they were sporadic. Indexes on Friday for trips from Brazil to China reached up to $25.13/tn (for route C3), while rates from Continent to Asia closed at $42.69K/d (for route C9 ) and Transatlantic round trips at $9.33K/day (for route C8).
Regarding Kamsarmaxes, there was favorable sentiment in the Atlantic Basin following the positive market performance of the previous week. However, this was not reflected in the rates since, especially in Brazil, there was a big gap between the offers of ship owners and charterers. In the north the trends changed according to the route. In transatlantic trips there was a drop while in travel to Asia the rates were kept at the same levels. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $19.5-21.5K/day (Asia delivery), Continent to Asia at $27.5-29.5K/day (Continent delivery) and Transatlantic round trips at $14-16K/day (Gibraltar delivery).
On the other hand, in Asia the market fell due to a lack of cargoes, but some cargoes of grains in the North Pacific and minerals from Australia kept the weekly losses in single digits. Indonesia-Far East round trip rates moved to $15-17K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market strengthened with more cargoes mainly on the Indonesia – India route, while interest was also lively for periods. However, shipments from Australia began to taper off. SMXs rates for travel between S. E. Asia and the Far East went to 19.5-21K/day. Further north, in the Far East the market maintained its momentum as there was a balance between demand and supply. Ship owners did not find it particularly difficult to find work while they preferred to keep their vessels in the area. SMXs rates for North Pacific (NOPAC) round trips moved to $13.5-15K/day, W. C. India round trips to $13.5-15K/day and Atlantic (BH) round trips to $ 14-15.5K/day.
In the Middle East Gulf and West C. India there appeared to be a climate reversal despite the fact that there was an oversupply of vessels as there was a steady flow of cargo. SMXs rates for Far East trips ranged from $17.5-19K/day (from Middle East’s Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle East Gulf – West C. India at $14-15.5 K/day and trips to the Atlantic at $ 6-7.5 K/day.
The Atlantic Basin and especially the US Gulf had a strong start to the week due to the trips to the other side of the Atlantic Basin. However, the second half of the week was quieter with most loads covered. SMXs rates for Transatlantic trips reached up to $17-18.5K/day and to Asia $20.5-22K/day. ECSA’s area moved up thanks to improved demand for transatlantic travel and tight capacity supply. SMXs rates for trips to the S.E. Asia-China moved to $26.5-28K/day and for Transatlantic travel (Mediterranean/Continent) to $23-24.5K/day.
Continent has been quiet with little new cargo and ship owners trying to keep rates up. SMXs rates for round-local trips moved to $15.5-17K/day, for trips with SCRAP cargoes to the Mediterranean at $15.5-17K/day and to Asia at $25.5-27K/ day. The Mediterranean showed two faces. On the one hand there was an increase for April loadings due to the lack of readily available vessels, and on the other hand there was a drop in rates for May trips. 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 was boosted by some scrap cargoes but the smaller vessels in the class appeared to be favored over the larger ones. In addition, the absence of fertilizers was evident. 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 $13.5-15K/day and for Transatlantic trips at $11-12.5K /day.
The Mediterranean was calm on both the western and eastern sides as grain, clinker and steel cargoes were absent. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $11-12.5K/day (delivery at Canakkale), to Continent at $9.5-11K/day (delivery to 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 continued its upward trend with more cargoes to the Mediterranean from both the gulf and the east coast. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $12-13.5K/day and to Asia at $17-18.5K/day.
The East Coast region of South America (ECSA) showed bullish trends following last week's trend. However, during the week rates fell as tonnage was also boosted by vessels being transported from the north. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $19-20.5K/day and to Asia at $22.5-24K/day.
In Asia, the south had a slow start to the week, but a rise in Australia and tight capacity supply helped improve sentiment. The picture was similar in the north, with better cargo flow in the middle of the week and calmer at the beginning and end. In the Gulf of the Middle East and western C. India the market progressed without particular changes. The number of vessels may have been small but the number of may the number of vessels was small but also the volume of cargo was not enough to raise the rates. Far East and NOPAC round trip charters on larger vessels closed at $13-14.5K/day, from S. E. Asia to China at $14-15.5K/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