www.TheSeaNation.gr

The dry bulk cargo market continued to show downward trends in the last week compared to the previous one, with single-digit declines in all sizes. More specifically, Capes fell by 2.3%, Kamsarmaxes -0.06%, Supramaxes -5.63% and Handies -0.33%, compared to the previous week. Thus, the BDI fell marginally by only 47 credits, compared to the previous week, and closed at 1797 credits on Friday, May 24.
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 core Western Australia – China route moved marginally in double-digit rates throughout the week, keeping pace even with the mid-week holiday. Index levels on the Australia-China route (C5) closed on Friday at $10.1/tn.
In the Atlantic and especially in Brazil, the good weather conditions favored the activity mainly for the 2nd half of the week. Conversely in the north the market was mixed, with closes higher and lower than the previous week with loading days as a key benchmark. indexes on Friday for trips from Brazil to China reached up to $24.77/tn (for route C3), while rates from Continent to Asia closed at $45.13K/d (for route C9 ) and Transatlantic round trips at $22.29K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin and mainly in the north the capacity supply was strengthened with vessels from Continent while the demand was subdued both for the transatlantic and for the trips to Asia. In the south, the market showed a small rise, however, throughout the week, there was a balance between demand and supply. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $20-22K/day (Asia delivery), Continent to Asia at $25-27K/day (Continent delivery) and transatlantic round trips at $13-15 K/day (delivery to Gibraltar).
On the other hand, in Asia the market showed a steady flow of cargoes as charterers were active and willing to book some mineral transport. There were also several shipments of grain to the North. Indonesia-Far East round trip rates ranged between 8-20K/day (Far East delivery).
For Supramaxes-Ultramaxes, Southeast Asia declined further as lack of demand was accompanied by capacity build-up. For another week Australia and Indonesia moved at low speeds unable to support the market. SMXs rates for travel between S. E. Asia and the Far East went to 18.5-20K/day. Further north, in the Far East the market was quiet due to the absence of the North Pacific. However, some steel demand from China left a positive feeling for next week. SMXs rates for North Pacific (NOPAC) round trips moved to $13.5-15K/day, W. C. India round trips to $14-15.5K/day and Atlantic (BH) round trips to $ 13.5-15K/day.
In the Middle East Gulf and West C. India the market was somewhat improved as there was more activity and demand. SMXs rates for Far East trips ranged between $17-18.5K/day (from Middle East’s Gulf (MEG) – West C. Indies (WCI)), for short-haul trips between Arabian Gulf – West C. India at $14-15.5 K/day and trips to the Atlantic Basin at $ 7-8.5 K/day.
The Atlantic Basin and especially the US Gulf had a slow start to the week as the list of open vessels was long. So the charterers pushed the rates to lower levels mainly for trips in the first half of June. On the contrary, the picture was a little better for trips in the second half of June. SMXs rates for Transatlantic trips reached up to $11.5-13K/day and to Asia $17-18.5K/day. The ECSA area moved downwards due to the large number of vessels available. At the end of the week there were several vessel negotiations reducing the capacity of supply. The rates of SMXs for trips to the S. E. Asia-China moved to $22.5-24K/day and for Transatlantic trips (Mediterranean/Continent) to $17.5-19K/day.
Continent continued to be under pressure as few cargoes found on the surface were immediately closed and rates subsequently fell. SMXs rates for circular-local trips moved to $10.5-12K/day, for voyages with SCRAP cargoes to the Mediterranean at $11.5-13K/day and to Asia at $17.5-19K/ day. The Mediterranean showed movement as there were some cargoes, however the oversupply of vessels left no room for a reversal of the climate. So, rates fell further. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $21-22.5K/day (Canakkale delivery), to the other side of the Atlantic Bain at $7.5-9K/day and within the Mediterranean at $ 9.5-11 K/day (outside war zones).
In the Handies market, in Continent the market has been quiet with demand moving at low levels and the list of vesels constantly increasing. The smallest sizes received the most pressure. Rat3s for the largest vessels in the class, for round trips reached up to $8.5-10K/day, to the Mediterranean with scrap cargoes at $10-11.5K/day and for transatlantic trips at $7-8.5K /day.
The Mediterranean was characterized by a negative climate, as the competition of shipowners was intense in order to close some of the few cargoes on the market even at lower numbers. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $6.5-8K/day (delivery at Canakkale), to Continent at $6.5-8K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $7.5-9K/day (delivery to Canakkale) and to Asia at $13-14.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market gradually declined as more and more vessels came into the area from the Panama Canal. Also, several future load closures are made at lower numbers. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $10-11.5K/day and to Asia at $13-14.5K/day.
The East Coast of South America (ECSA) region showed upward trends, not so much due to improved demand but mainly due to limited available capacity. So transatlantic travel saw an increase in rates, followed by travel to Asia. A point of pressure was the moving vessels from the American Gulf. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $16.5-18K/day and to Asia at $18.5-20K/day.
In Asia, the positive climate was maintained in the north and south despite the lack of cargo and vessels. The sector’s largest sizes in particular maintained their momentum. Further west, in the Gulf of the Middle East and W. C. India a lack of readily available vessels and some short trips strengthened the market. Far East and NOPAC round trip charters on larger vessels closed at $13.5-15K/day, from S. E. Asia to China at $16.5-1K/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