www.TheSeaNation.gr

The dry bulk cargo market advanced positively with CAPES continuing their upward run, posting a weekly gain approaching 40%, followed by Panamaxes with marginal improvements. More specifically, Capes are up 39.4%, Kamsarmaxes +3.04%, Ultramaxes (63) -5.56% and Handies -2.51%, compared to the previous week. Thus, the BDI rose by 290 credits compared to the previous week and closed at 1785 credits on Friday, November 15.
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 plenty of activity and plenty of mineral cargoes. Optimism prevailed, which was accompanied by a rise in rates and continued throughout the week. Index levels on the Australia-China route (C5) closed Friday at $11.63/tn.
In the Atlantic Basin there was a big increase in rates in the 2nd half of the week with good cargo flow both north and south on all routes. The most impressive increase of more than 50% compared to the previous week was in transatlantic trip. Indexes on Friday for trips from Brazil to China reached up to $27.78/tn (for route C3), while rates from Continent to Asia closed at $47.20K/d (for route C9 ) and Transatlantic round trips at $26.94K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north, cargoes of wheat from the Gulf and ores from the east coast of America strengthened the market. Towards the end of the week we saw the rate market stabilize. And in the south, there was a lot of movement with rates showing a small increase. For example, the rates for trips from East Coast of S. America (ECSA) to the Far East reached up to $9.5-11.5K/day (W. C.India delivery), Continent to Asia at $16.5-18.5K/day (Continent delivery) and Transatlantic round trips at $8-10K/day (Gibraltar delivery).
On the other hand, in Asia the market moved in two gears. At the beginning of the week there was a lot of movement with a large volume of closes. But later in the week the flow of cargo was not renewed. So, there was a concentration of capacity and some of it was moved to South America. Indonesia-Far East round trip rates moved to $12-14K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed slight improvements as there were more coal cargoes from Indonesia and Australia was also active. UMXs rates for travel between S. E. Asia and the Far East went to 12.5-14K/day. Further north, in the Far East the market declined as demand from China and the North Pacific was limited. UMXs rates for North Pacific (NOPAC) round trips moved to $8.5-10K/day, W. C. India round trips to $10.5-12K/day and Atlantic Basin (BH) round trips to $ 11-12.5K/day.
In the Middle East Gulf and West C. India, the market continued its downward trend with rates for the larger sizes to all its routes hovering around 11K per day. UMXs rates for Far East trips ranged from $10.5-12K/day (from Middle East’s Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle’s East Gulf – West C. India at $10.5-12 K/day and trips to the Atlantic Basin at $ 6.5-8 K/day.
In the Atlantic Basin and especially the American Gulf, the week began with the absorption of part of the offered capacity in some cargoes, which offered optimism to shipowners. But the limited demand for trip to Asia left no room for growth. UMXs rates for Transatlantic trips reached up to $20.5-22K/day and to Asia $21-22.5K/day. The ECSA region started the week on a positive note with improvements in larger sizes and some new loads entering the market. However, later in the week new cargo entry rates fell and a concentration of capacity began to be observed mainly in West C. Africa. SMXs rates for trips to the S. E. Asia-China moved to $19-20.5K/day and for Transatlantic trip (Mediterranean/Continent) to $17.5-19K/day.
Continent started the week with several fresh jobs that led the numbers to rise. Towards the end of the week there was more balance between demand and supply. UMXs rates for round-local trips moved to $15.5-17K/day, for trips with SCRAP cargoes to the Mediterranean at $17.5-19K/day and to Asia at $21.5-23K/ day. The Mediterranean was under pressure from the increase in the number of vessels which could not be absorbed by the existing demand. The Western Mediterranean had improved demand, but movement of many vessels from the East left no room for improvement. For example, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $18-19.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $7.5-9K/day and within the Mediterranean at $ 9-10.5K/day (outside war zones).
In the Handies market, in Continent the market showed increased activity. This made several shipowners prefer to wait in case they see better rates in the coming days. Rates for the largest vessels in the class, for round trips reached up to $10.5-12K/day, to the Mediterranean with scrap cargoes at $11.5-13K/day and for transatlantic trips at $7.5-9K/day day.
The Mediterranean was buoyed by some new grain cargoes, but the increased number of vessels available pushed rates to lower figures. Only some shipments to West Africa showed interest. Larger vessel rates (over 36K tons DWT) for intra-Med trips moved to $8.5-10K/day (delivery at Canakkale), to Continent at $8-9.5K/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 was calm with little new cargo to enrich it. No significant changes are expected until the end of the month. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $13-14.5K/day and to Asia at $17.5-19K/day.
The East Coast of South America (ECSA) region saw satisfactory activity with some climate-changing closures. The larger vessels in the sector showed a better image than the smaller ones, while the south also had an increased demand compared to the north. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15.5-17K/day and to Asia at $16.5-18K/day.
In Asia and mainly in China the activity was limited but the rates showed marginal losses, compared to the previous week, after the shipowners strongly resisted the pressures of the charterers. The greatest interest was concentrated in trips from Australia. Further west, a balance between supply and demand was observed, but it was not enough to improve the climate. Far East and NOPAC round trip charters for larger vessels closed at $11.5-13K/day, from S. E. Asia to China at $9.5-11K/day and from the West C. India to China at $7-8.5K/day.

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