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The dry bulk cargo market declined for another week with Capes recording a double-digit weekly decline and smaller sizes following with single-digit weekly losses. Specifically, Capes fell by 18.78%, Kamsarmaxes -6%, Ultramaxes (63) -0.42% and Handies -1.61%, compared to the previous week. Thus, the BDI fell by 183 credits, compared to the previous week and closed at 1537 credits on Friday, November 29.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessel size, starting with CAPEs. In Asia, the week started positively with a lot of activity from miners. However, operational problems caused by bad weather conditions and the increase in the number of available vessels reduced rates. The index levels on the Australia-China route (C5) closed on Friday at $8.87/tn.
In the Atlantic Basin, rates fell significantly as the oversupply of vessels quickly absorbed the limited demand that appeared in both the north and south. The indexes on Friday reached up to $20.05/tn for the trips from Brazil to China (for the C3 route), while the rates from Continent to Asia closed at $38.88 K/day (for the C9 route) and the Transatlantic circular trips at $17.92K/day (for the C8 route).
Regarding Kamsarmaxes, mixed trends appeared in the Atlantic basin. On the one hand, the market in the north showed signs of stabilization towards the end of the week, and on the other hand, in the south, where there was a sluggishness throughout the week. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 17-19K/day (ECSA delivery), from Continent to Asia at $ 14-16K/day (delivery in Continent) and the circular Transatlantic trips at $ 7-9K/day (delivery in Gibraltar).
On the other hand, in Asia the oversupply of vessels and the lack of cargoes maintained the downward trends in the rates during the week. Since the Atlantic Basin is not an attractive alternative either, many vessels remained in the region. A positive point (if we can say so) is the fact that some vessels found employment. The rates for round trips in Indonesia-Far East moved at $ 8-10K /day (delivery Far East).
For Supramaxes-Ultramaxes, in Southeast Asia the market declined due to the lack of coal cargoes from Indonesia. In addition, there was no particular support from Australia. UMXs rates for trips between SE Asia and the Far East went to 12.5-14K/day. Further north, in the Far East the market showed a steady flow of cargoes from both China and the North Pacific, giving a small boost to rates. The bad weather conditions expected next week in China are causing concern. UMXs rates for round trips in the North Pacific (NOPAC) moved to $ 9.5-11K/day, for trips to W. C. India at $ 11.5-13K/day and return trips in the Atlantic Basin (BH) at $ 9-10.5K/day.
In the Middle East Gulf and West C. India the market showed small improvements in both activity and rates. It seems that the mood has changed and there is moderate optimism. Rates for UMXs for trips to the Far East ranged between $11.5-13K/day (from Middlea East Gulf (MEG) – West C. India (WCI)), for short trips between Middle East Gulf – West C. India at $9.5-11K/day and trips to the Atlantic Basin at $6-7.5K/day.
In the Atlantic Basin and especially the American Gulf, there was more activity as charterers sought to meet their immediate requirements before the Thanksgiving break. Transatlantic trips stood out. UMXs rates for Transatlantic trips reached up to $17.5-19K/day and to Asia at $18.5-20K/day. The ECSA region started the week with some optimism as there were several new cargoes mainly for the other side of the Atlantic Basin. However, expectations were quickly dashed as no cargoes were renewed. SMXs rates for trips to SE Asia-China moved at $18.5-20K/day and for Transatlantic trips (Mediterranean/Continent) at $17.5-19K/day.
Continent moved slowly with limited activity driving rates to lower levels. UMXs rates for round-local trips moved to $13.5-15K/day, for SCRAP trips to the Mediterranean at $14.5-16K/day and to Asia at $16.5-18K/day. The Mediterranean continued to show a recession with declining demand. For another week the Western Mediterranean shows a better picture than the Eastern Mediterranean but not enough to improve rates. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $ 16.5-18K/day (delivery Canakkale), to the other side of the Atlantic Basin at $ 6-7.5K/day and within the Mediterranean at $ 8.5-10K/day (excluding war zones).
In the Handies market, in Continent the market progressed at low speeds after calm prevailed. Thus, a slight drop in rates was observed. Rates for the largest vessels in the category, for round trips, reached up to $ 9.5-11K/day, to the Mediterranean with scrap cargo at $ 11-12.5K/day and for Transatlantic trips at $ 9-11.5K/day.
The Mediterranean maintained credit trends, as shipowners could not find attractive alternatives from the Black Sea and the Eastern Mediterranean. The rates of larger vessels (over 36K DWT) for trips within the Mediterranean were at $8.5-10K/day (delivery in Canakkale), to Continent at $8-9.5K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $6.5-8K/day (delivery in Canakkale) and to Asia at $11.5-13K/day.
On the other side of the Atlantic, in the American Gulf, the market started the week with increased demand. Moreover, all parties involved wanted to conclude their discussions before Thanksgiving. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic ranged between $ 11.5-13K/day and to Asia at $ 15.5-17K/day.
The East Coast of South America (ECSA) region was active with satisfactory cargo flow at first from the south and then from the north. Larger vessels continue to have a better image than smaller ones. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent -Mediterranean) ranged between $ 15.5-17K/day and to Asia at $ 17.5-19K/day.
In Asia and particularly in the south, the market was pressured since demand was extremely limited from Indonesia and Australia. And in the north the picture was similar with rates moving downwards. More interesting were the trips to the Atlantic Basin. Further west the Middle East Gulf and W. C. India showed signs of improvement with some new cargoes entering the market. The rates of the largest vessels in the category for circular trips to the Far East and NOPAC closed at $ 11-12.5K / day, from SE Asia to China at $ 9-10.5K / day and from West C. India to China at $ 8.5-10K / day.

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