Σαβ06252022

Last updateΣαβ, 25 Ιουν 2022 4pm

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Asia retreats, improvements in the Atlantic Basin

bulk cargo 653

Iakovos (Jack) Archontakis
Commercial Manager TMC MARITIME CO.

Fotios-Evangelos Karlis
Chartering Department TMC MARITIME CO.

New drop was noted by the dry bulk cargo market, with the biggest drop noted by Panamaxes and Supramaxes and the smallest by Handies and Capes. Asia showed an downward trend while in the Atlantic Basin the image was better even though the individual indexes regarding smaller sizes was negative (compared to last week). Specifically, Capes retreated 1.21%, Kamsarmaxes -10%, Supramaxes -8.77% and Handies -4.89%, compared to last week. With that given, BDI presented a drop of 187 credits (-7.35%) and closed at 2357 credits on Friday, 1st of April.
Let’s now see specifically, how the dry bulk cargo market moved last week per vessel’s size, starting off with Capes. In Asia, the market moved on lower levels as for the main line, from Australia to China, as much for transpacific trips, despite the fact that China continued at a steady pace to import iron ore. Freights levels regarding route Australia-China (C5) closed at $ 10.64 / tn at the end of the week.
In the Atlantic Basin, a rise of exports from Brazil was observed, compared to last week. However, indexes from this specific area presented a borderline fall. On the contrary, North Atlantic Basin showed greater interest with transatlantic trips and trips to Asia noting weekly rise. Friday’s freights, as regards trips from Brazil to China, reached $ 26.2 / tn (for route C3), while rates from Continent to Asia closed at $ 33.6K / day (for route C9) and for transatlantic round trips at $ 12.2K / day (for route C8).
Considering Kamsarmaxes, in North Atlantic the market started off without any significant changes, but then the environment was negative, even though the number of vessels remained limited. In Latin America the start of the week found the market in lower levels than in the last week. On the second half of the week, activity improved, but the bookings that were noted were on lower numbers than on the past days. Indicatively, rates regarding trips from East Coast of Latin America (ECSA) to the Far East increased at $ 24.5-26K/ day +$ 1450-1600K GBB, and from the other side of the Atlantic Basin at $ 46.5-48K/ day (delivery at ECSA) and round transatlantic trips through the U. S. Gulf at $ 26-27 K/ day.
On the other hand, in Asia the market started off with decreased activity and rates retreating. Indonesia then enhanced the market with more cargoes, but over demand of vessels in the North remained the fall tendencies of the market. Rates regarding round trips from Australia to the Far East moved between $ 25-27K/ day.
As regards Supramaxes-Ultramaxes in South East Asia market lost more ground, since ,due to the restrictions of the pandemic, coal cargo flow has been limited. SMX’s rates regarding trips between S. E. Asia and the Far East decreased at $ 30.5-31.5 K/ day. Northern, in the Far East the market presented further drop. General cargo and steel cargo are limited, while restrictions that have been applied on the Chinese ports for the pandemic are causing problems on the business sector. SMX’s rates regarding round trips to the Far East and NOPAC moved between $ 28-29 K/ day, as regards trips to W. C. India between $ 28.5-29.5 K/ day and for returning trips to the Atlantic Basin (BH) between $ 38-39.5 K/ day.
In the Middle East Gulf (MEG) and W. C. India, March closed with less cargoes to Bangladesh. This way rates could be maintained, without any particular changes, but the environment was not as positive as during the previous period. SMX’s rates regarding trips to the Far East decreased at $ 29.5-30.5 K/ day (from MEG to W. C. India), regarding short trips between MEG – W. C. India at $ 27.5-29 K/ day and for trips to the Mediterranean at $ 30.5-31.5 K/ day.
In the Atlantic Basin and especially in USGulf, transatlantic trips remained stable, on the contrary routes to East presented an upward trend, while owners were requesting premium for these trips. SMX’s rates regarding transatlantic trips remained at $ 34-35 K/ day and to Asia at $ 30-31 K/ day. In ECSA area the dry bulk cargo market presented improvements. Demand remained on the same levels but the vessels’ list is being enhanced with vessels that are moving from the north to W. Africa. SMX’s rates for trips from S. E. Asia-China dropped at $ 36.5-37.5 K/ day and for transatlantic trips (Mediterranean-Continent) at $ 47-48 K/ day.
Continent’s market retreated. Many cargoes were observed, however as time goes on fewer and fewer shipowners move further south. SMX’s rates regarding round-local trips moved between $ 24-25.5 K/ day, for trips with scrap cargo to the Mediterranean between $ 24-25 K/ day and to Asia between $ 26-27 K/ day. In the Mediterranean we observed more industrial cargo, but they were not enough to absorb all capacity’s supply, resulting in rates to fall. Indicatively, it is reports that a SMX for a trips from the Mediterranean/ Black Sea to Asia closed at $ 26.5-27.5 K/ day (delivery at Canakkale/ Black Sea), to the other side of the Atlantic Basin at $ 21-22 K/ day and to Mediterranean at $ 21.5-22. K/ day.
Regarding Handies market, in Continent increase regarding available vessels was observed, but the market maintained its dynamic. Many owners prefer to move to South Atlantic. Rates considering bigger vessels of the category, regarding round trips remained at $ 20-21 K/ day, to the Mediterranean with scrap cargo at $ 21.5-22.5 K/ day and for transatlantic trips at $ 19-20 K/ day.
Mediterranean presented fluctuated tendencies. On the one hand, trips to Asia that presented improvements and on the other hand trips to the Mediterranean remained stable and trips to the other side of the Atlantic Basin retreated. Bigger vessels rates (past 36K tonne DWT) regarding trips in the Mediterranean moved between $ 19.5-20.5 K/ day (delivery at Canakkale), to the Continent at $ 20.5-21.5 K/ day (delivery at Canakkale), to the other side of the Atlantic at $ 19-20 K/ day (delivery at Canakkale) and to Asia at $ 22-23 K/ day.
To the other side of the Atlantic Basin, in the U. S. Gulf the market contained the positive environment, even though at the end of the week transatlantic trips were under pressure. Significant interest presented by trips to Asia. Indicatively, rates of the bigger vessels of the category, considering trips to the other side of the Atlantic levelled off at $ 30-31 K/ dayand to Asia at $ 25.5-26.5 K/ day.
ECSA’s Market started off negatively, with the number of vessels increasing and continued like that since demand was limited. With that given, rates of the bigger vessels from ECSA market as regards transatlantic trips (Continent-Mediterranean) moved between $ 45-46.5 K/ day and to Asia between $ 40-41 K/ day.
In Asia, areas of the Far East and S. E. Asia lost ground for another week. In China, lockdowns caused problems to the production reducing exports, while vessels were increased. Southern, demand could not cover the supplied capacity as well. In MEG and W. C. India the market remained on the same levels even though intense activity was observed with many charterers wanting to meet their needs before Ramadan period. Rates of the bigger vessels of the category regarding round trips to the Far East and NOPAC closed at $ 31.5-32.5 K/ day, from S. E. Asia to China at $ 32-33 K/ day and from W. C. India to China at $ 28.5-29.5 K/ day.

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