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The dry bulk cargo market showed downward trends in all sizes although weekly losses were in single digits. Only a few indicative Atlantic routes in various sizes closed the week in the green. More specifically, Capes fell by 0.43%, Kamsarmaxes -0.19%, Ultramaxes (63) -6.18% and Handies -1.35%, compared to the previous week. Thus, the BDI fell by 32 credits compared to the previous week and closed at 1378 credits on Friday, November 1.
Let's see, in more detail, how the dry bulk cargo market by vessel size moved last week, starting with CAPEs. In Asia, the week started with limited movement from miners. Also, bad weather conditions in Chinese ports worsened the market picture. In the middle of the week there was some improvement more coal cargoes from S. Australia, but this did not last long. Index levels on the Australia-China route (C5) closed on Friday at $8.61/tn.
In the Atlantic Basin and particularly in the north, the lack of action led to lower numbers mainly for transatlantic trips. On the contrary, at the beginning of the week there was more interest in travel to Asia. In the south Brazil and West Africa showed stable demand. Indexes on Friday for trips from Brazil to China reached up to $20.49/tn (for route C3), while rates from Continent to Asia closed at $35K/d (for route C9) and Transatlantic round trips at $13.29K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north, the week started with a limited cargo volume that could not absorb the excess capacity. However, mid-week wheat shipments from the US Gulf on the other side of the Atlantic Basin stabilized the market. In the south the market continued its downward trend with a small number of loads for mid-November. For example, the rates for the trips from the E. Coast S. America (ECSA) to the Far East reached up to $20.5-22.5K/day (America delivery), Continent to Asia at $17-19K/day (Continent delivery) and transatlantic round trips in $8.5-10.5K/day (Gibraltar delivery).
On the other hand, in Asia the market lost ground with the various holidays (Greece, W. C. India and Singapore) keeping the rates low. Even cargoes from Indonesia and the North Pacific appeared not to be enough to change the negative climate. Indonesia-Far East round trip rates moved to $12-14K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market declined due to the absence of coal cargoes from Indonesia, while Australia was also quiet. Also, the Diwali holidays at the end of the week added pressure to the market. UMXs rates for travel between S. E. Asia and the Far East went to 15.5-17K/day. Further north, in the Far East the market showed no improvement and continued to be under pressure. UMXs rates for North Pacific (NOPAC) round trips moved to $12.5-14K/day, W. C. India round trips to $13.5-15K/day and Atlantic Basin (BH) round trips to $ 12.5-14K/day.
In the Gulf of the Middle East and West C. India the market may have shown enough mobility, but the oversupply of vessels did not allow a change in the negative climate. UMXs rates for Far East trips ranged from $11.5-13K/day (from Middle East Gulf (AG) – West C. Indies (WCI)), for short-haul trips between Middle East Gulf – West C. Indies at $12-13.5 K/day and trips to the Atlantic Basin at $ 7-8.5 K/day.
In the Atlantic Basin and especially the American Gulf showed the sharpest drop in recent weeks since the volume of cargo was greatly reduced. However, some cargoes from the Gulf for the 2nd half of November left a glimmer of optimism. UMXs rates for Transatlantic trips reached up to $20-21.5K/day and to Asia $21.5-23K/day. The ECSA region declined as cargo flow for both transatlantic and Asian trips did not renew. The sector was also under pressure from the larger vessels. SMXs rates for trips to the S. E. Asia-China moved to $20-22.5K/day and for Transatlantic trips (Mediterranean/Continent) to $18-19.5K/day.
Continent showed downward trends with fewer scrap shipments. Moreover the shipowners were willing to reduce their ideas of trips to the other side of the Atlantic. UMXs rates for circular-local trips moved to $17-18.5K/day, for trips with SCRAP cargoes to the Mediterranean at $17.5-19K/day and to Asia at $21.5-23K/ day. The Mediterranean started the week at the same levels as it closed the previous one, while as the days progressed, capacity increased, resulting in some closings at lower levels. For example, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $18.5-20K/day (Canakkale delivery), to the other side of the Atlantic Basin at $9-10.5K/day and within the Mediterranean at $ 10.5-12K/day (outside war zones).
In the Handies market, in Continent the market continued at the same pace with demand and supply being in balance. Russian cargoes from the Baltic continued to command some premium. Rates for the largest vessels in the class, for round trips reached up to $10-11.5K/day, to the Mediterranean with scrap cargoes at $11-12.5K/day and for Transatlantic trips at $9-10.5K/day day.
The Mediterranean continued to decline. After demand moved to low levels and the supply of vessels increased. Larger vessels rates (over 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 without its direction being clear. But with the passing of the days the picture improved and the fares went up. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $15-16.5K/day and to Asia at $19.5-21K/day.
The East Coast of South America (ECSA) region was quiet without much action with charterers taking a wait-and-see attitude in anticipation of further declines. There was also competition from the Supramaxes, which were also looking at smaller loads. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15-16.5K/day and to Asia at $16.5-18K/day.
In Asia the south retreated as Indonesia and Australia did not provide any meaningful support, increasing the capacity pool. In the north the picture was somewhat better as the market started to stabilize and there is more optimism for the time ahead. Further west, in W. C. India and the Middle East the market moved at slow speeds, while the Diwali holidays on October 31 and November 1 kept those involved away from their offices. Far East and NOPAC round trips on larger vessels in the class closed at $12.5-14K/day, from S. E. Asia to China at $11-12.5K/day and from the West C. India to China at $7.5-9K/day.

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