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Panamaxes and Ultramaxes advanced with smaller losses, while Handies remained unchanged. In detail, Capes fell by 18.45%, Kamsarmaxes -6.51%, Ultramaxes(63) -0.82% and Handies +0.14%, compared to the previous week. Thus, the BDI fell by 166 credits compared to the previous week and closed at 1410 credits on Friday, October 25.
As you can see, in more detail, how the dry bulk cargo market by vessel size moved last week, starting with CAPEs. Asia the limited activity of miners and the increase in the number of vessels in the region led to a further drop in the levels of the freight market during the first half of the week. However, mid-week improvements were made, limiting the weekly losses. Benchmark benchmarks on the Australia-China route (C5) closed Friday at $8.74/tn.
In the Atlantic Basin and particularly in the north there were pressures on both transatlantic and Asian trips. Brazil and West Africa saw small trends for routes to China. Indexes on Friday reached for trips from Brazil to China at $20.91/tn (for route C3), while rates from Continent to Asia closed at $33.23K/d (for route C9 ) and Transatlantic round trips at $13.68K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north, the week started with an oversupply of vessels while the demand was not enough to cover the open vessels, and the rates increased. And in the south the picture was similar with reduced demand and a further drop in rates. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $11-13K/day (India delivery), Continent to Asia at $18-20K/day (Continent delivery) and transatlantic round trips at $7-9 K/day (delivery to Gibraltar).
On the other hand, in Asia the week started sluggishly. But during the week demand strengthened with more cargoes from the North Pacific and Indonesia. This may not have been reflected in the rate levels, but the image of the market has changed and there is more optimism. Indonesia-Far East round trip rates moved to $12-14K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market started the week positively with some new cargoes for November. But the increase in capacity in the middle of the week did not allow rates to rise. UMXs rates for travel between S.E. Asia and the Far East went to 17-18.5K/day. Further north, in the Far East the market continued its downward trend as both the North Pacific and Atlantic trips moved at low levels on the demand side. UMXs 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 $ 14.5-16K/day.
In the Gulf of the Middle East and the West C. Indies, the market saw quite a bit of movement, but the oversupply of vessels in recent weeks did not allow the rise in rates. UMXs rates for Far East trips ranged between $13.5-15K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short-haul trips between a Middle East Gulf – West C. Indies at $12.5-14 K/day and trips to the Atlantic Basin at $8.5-10 K/day.
In the Atlantic Basin and especially the American Gulf, it started strongly with increased closings and offers from shipowners, however with the entry of new vessels into the market, competition increased, and ideas were readjusted. Only some transatlantic trips with dirty cargoes paid a premium. UMXs rates for Transatlantic trips reached up to $21.5-23K/day and to Asia $24.5-26K/day. The ECSA region has come under pressure due to cargo shortages and capacity pooling. However some closes in satisfactory numbers at the start of the week gave shipowners confidence to aim for higher numbers. The rates of SMXs for trips to the S. E. Asia-China moved to $22.5-24K/day and for Transatlantic travel (Mediterranean/Continent) to $19-20.5K/day.
Continent experienced another week of good cargo flow and a limited number of vessels. Driver in this course was the scrap loads. UMXs rates for round-local trips moved to $17.5-19K/day, for trips with SCRAP cargoes to the Mediterranean at $16.5-18K/day and to Asia at $22.5-24K/ day. The Mediterranean moved at two speeds. At the beginning of the week increased demand drove the market. But when the loads were covered, the list was not renewed, resulting in a drop in turnover. For example, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $20-21.5K/day (Canakkale delivery), to the other side of the Atlantic at $10-11.5K/day and within the Mediterranean at $ 13-14.5K/day (outside war zones).
In the Handies market, in Continent the market was quiet with minimal activity. However, the reduced supply of capacity greatly improved the market sentiment. Rates for the largest vessels in the class, for round trips reached up to $11-12.5K/day, to the Mediterranean with scrap cargoes at $11.5-13K/day and for transatlantic trips at $9.5-11K/day day.
The Mediterranean showed two faces. On the one hand there were more cargoes from the Black Sea but on the other hand this was not reflected in the rates which remained flat at best. Larger vessel’s rates (above 36K tonnes DWT) for intra-Med trips moved to $9-10.5K/day (delivery at Canakkale), to continent at $8.5-10K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $8-9.5K/day (Canakkale delivery) and to Asia at $12.5-14K/day.
On the other side of the Atlantic Basin, in the US Gulf the market started the week strong and continued that way throughout the week. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between $14-15.5K/day and to Asia at $19.5-21K/day.
The East Coast of South America (ECSA) region rose as there was plenty of activity. The charterers, seeing that in the coming weeks the supply of vessels is decreasing, rushed to cover their cargoes in order to prevent a possible increase in the rates. 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 $18-19.5K/day.
In Asia a lack of cargo from Indonesia, Australia and the North Pacific was evident and only some return trips to the Atlantic offered support to the market. Further west, in the Middle East Gulf and W. C. India, charterers were active but the list of vessels remained high preventing any market improvement. Far East and NOPAC round trip charters for larger vessels closed at $12.5-14K/day, from S. E.. Asia to China at $10.5-12K/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