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Last updateΠεμ, 19 Μαϊ 2022 12pm

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New rise in the Atlantic, pressure on Asia

bulk ships 000

Iakovos (Jack) Archontakis.
Commercial Manager TMC MARITIME CO.

Fotios-Evangelos Karlis
Chartering Department TMC MARITIME CO.

The dry bulk cargo market kept on rising, with Capes leading the index and Supramaxes and Handies are following. On the contrary, Panamaxes presented a borderline fall. To be more specific, capes increased by 16%, Kamsarmaxes retreated -2%, Supramaxes +2% and Handies +6%, compared to last week. With that given, BDI presented a drop of 97 credits (-4%) and closed at 2404 credits in Friday, the 29th of April.
Let’s now see more specifically, how the dry bulk cargo market moved last week, as per vessel’s size, starting off with Capes. The market in Asia retained its upward trend until the middle of the week and then retreated. The Chinese raised their imports from Brazil and S. Africa compared to Australian ones. Freight levels for the route Australia-China (C5) closed at $ 11.96 / tn at the end of the week.
In the Atlantic and especially the route from Brazil to China lost almost a dollar compared to the beginning of the week, despite the improvement of the activity from Wednesday and after. In the North Atlantic we can say that the market was balanced between demand and supply. Friday’s freights, reached up to $ 25.47 / tn regarding trips from Brazil to China (route C3), while rates from Continent to Asia closed at $ 34.45 K/ day (for route C9) and transatlantic round trips at $ 12.97 K/ day (for route C8).
As regards Kamsarmaxes, in the Atlantic Basin after the end of Orthodox Easter, more action was observed and despite the fact that there was a significant number of vessels, even more were needed. The next days of the week, were more encouraging, despite the fact that all these conversations were not lead to any booking. Indicatively, rates regarding trips from East Coast of South America (ECSA) and to the Far East reached up to $ 28-30 K/ day (delivery at Asia), from the U. S. Gulf to Asia at $ 37-38.5 K/ day (delivery at Continent) and round transatlantic trips through the U. S. Gulf and N. Coast of S. America at $ 27-28 K/ day.
On the other hand, in Asia the market showed an downward trend at the beginning of the week, even though differentiations were observed among routes. Consequently, activity improved, while we are getting closer on Chinese holidays. Owners and charterers were willing to book before the holidays. Rates regarding round trips to Australia-Far East moved between $ 14.5-16.5 K/ day.
Considering Supramaxes-Ultramaxes, in S. E. Asia, the market rereated while coal cargoes from Indonesia were missing. SMX’s rates for trips between S. E. Asia and the Far East decreased at $ 27.5-28 K/ day. Northern, in the Far East the market enhanced with more general and steel cargoes while cis was active as well. However, rates image was not respective since they moved on lower levels compared to past period. SMX’s rates as regards round trips to the Far East and NOPAC moved between $ 26-27.5 K/ day, regarding trips to W. C. India between $ 30-31 K/ day and for the returning trips from the Atlantic Basin (BH) between $ 34-35 K/ day.
In the Middle East Gulf (MEG) and W. C. India, the dry bulk cargo market presented an upward trend, with demand presenting improvements and owners having various options. SMX’s rates for trips to the Far East increased at $ 36-37 K/ day (from MEG – W. C. India), regarding short-trips between MEG-W. C. India at $ 32.5-33.5 K/ day and for trips to the Mediterranean at $ 28.5-29.5 K/ day.
In the Atlantic Basin and especially in the U. S. Gulf the market was significantly active with many bookings during the week. Charterers were pursuing bookings and owners were waiting to see how more the market would raise. With the cargo list for May being satisfactory and the prospects remain positive. SMX’s rates for transatlantic trips levelled off at $ 47-48 k/ day and to Asia raised at $ 42-43 K/ day. In ECSA area the market moved with a lower rhythm. The offered capacity is slight bigger compared to the last week, while demand renewed with some additional cargo. SMX’s rates regarding trips to S. E. Asia-China remained at $ 42-43 K/ day and regarding transatlantic trips (Mediterranean/ Continent) at $ 44-45 K/ day.
Continent’s market was strengthened from the short number of vessels, despite the limited volume of cargoes. SMX’s rates regarding round-local trips moved between $ 24.5-26 K/ day, for trips with scrap cargo to the Mediterranean at $ 26-27 K/ day and to Asia at $ 29-30 K/ day. In the Mediterranean the market stayed under pressure, since the absence of cargoes were obvious. Indicatively, it is claimed that an SMX for a trips to the Mediterranean to Asia closed at $ 23-24 K/ day (delivery at Canakkale), to the other side of the Atlantic at $ 17-18 K/ day and in the Mediterranean at $ 19.5-20.5 K/ day.
Handie’s market, in Continent moved in better levels, after many vessels transferred to the other side of the Atlantic, resulting in a reduced offered capacity. Rates considering the bigger vessels of the category, regarding round trips increased at $ 20.5-21.5 K/ day, to the Mediterranean with scrap cargo at $ 22.5-23.5 K/ day and transatlantic trips retreated at $ 18-19 K/ day.
The Mediterranean presented some fluctuation, with rates’ direction to differ according to the route. Routes to the U. S. Guld and Asia presented an increase, while to the Continent, S. America and W. Africa remained on the same levels. 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 $ 18-19 K/ day (delivery at Canakkale), to the other side of the Atlantic at $ 18.5-20 K/ day (delivery at Canakkale) and to Asia at $ 24-25 K/ day.
On the other side of the Atlantic, in the U. S. Gulf the market rose sharply as much for trips Asia, that demand from China was increased, as for transatlantic trips, where owners were not willing to move and were asking for premium. Indicatively, rates of the bigger vessels of the category regarding trips to the other side of the Atlantic levelled off at $ 34-35.5 K/ day and to Asia at $ 29.5-30.5 K/ day.
ECSA’s market continued dynamically, with rates moving past 40 K regarding all routes. With that given, rates of the bigger vessel’s of the ECSA area regarding transatlantic trips (Continent-Mediterranean) moved between $ 40-41 K/ day and to Asia between $ 44-45 K/ day.
In Asia, in MEG and W. C. India the dry bulk cargo market more or less remained constant without significant variations. More extensively, we saw rates increasing, with charterers rushing to meet their needs before the holidays of the next week. Bigger vessels’ rates of the category regarding round trips to the Far East and NOPAC closed at $ 28-29 K/ day, from S. E. Asia to China at $ 26-27 K/ day and from W. C. Inida to China at $ 25.5-26.5 K/ day.

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