Σαβ01282023

Last updateΠαρ, 27 Ιαν 2023 10pm

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Capes raised BDI

bulker vessel 0098

Iakovos (Jack) Archontakis
Commercial Manager TMC MARITIME CO.

Fotios-Evangelos Karlis
Chartering Department TMC MARITIME CO.

A rise was seen in the drybulk cargo market last week, with Capes showing a big increase while the other sizes fell. More specifically, capes rose by 15%, Kamsarmaxes -3.7%, Supramaxes -4.3%, and Handies -5.8%, compared to the previous week. Thus, the BDI improved by only 32 credits (+2.42%) and closed at 1355 credits on Friday, November 11.
Let's see, in more detail, how the dry bulk cargo market by ship size moved last week, starting off with CAPEs. In Asia there were several bookings and even with improved freights on the Western Australia-China route. It should be noted that the weather conditions created several problems in the ports. Index levels on the Australia-China route (C5) closed on Friday at $8.83/tn.
In the Atlantic Basin we saw several vessels from Asia move west as demand from Brazil and Africa improved mainly for November cargoes. On the contrary, trips with loadings in December move at lower levels. Indexes on Friday regarding trips from Brazil to China reached up to $19.76/tn (for the C3 route), while Continent to Asia rates closed at $26.9K/day (for the C9 route) and Transatlantic round trips at $16.9K/day (for route C8).
Regarding Kamsarmaxes in the Atlantic Basin the market moved in two gears. During the first half of the week the demand was reduced leading to a drop in the market. But in the second half of the week the US Gulf strengthened with more grain cargoes. In South America the charterers taking advantage of the lack of cargoes offered numbers with delivery to ECSA. For example, rates for the trips from the East Coast of South America (ECSA) to the Far East reached up to $32-34K/day (Lat. America delivery), transatlantic round trips up to $11-13K/day and from the US Gulf or N. Coast of South America to Mediterranean up to $13.5-15.5K/day (Gulf delivery).
On the other hand, in Asia the flow of cargo was limited and any negotiations that took pplace regarding trips from Indonesia to China and round trips in the North Pacific were at lower rate levels. Indonesia-Far East round trip rates ranged between $12-14K/day.
For the Supramaxes-Ultramaxes in Southeast Asia more cargoes were presented but not enough to absorb the long list of "open" vessels that has been gathering in the region since the previous days. SMXs rates as regards trips between N.A. Asia and the Far East fell to 8-9.5K/day. Further north, the Far East continued the free fall of the previous period. Now on most routes we see four-digit numbers. SMXs rates for NOPAC round trips moved between $7.5-8.5K/day, trips to W. C. India between $5-6K/day and returning trips to the Atlantic (BH) $8-9; 5K/day.
In the Middle East Gulf and West India the market further declined. A small decrease in the number of vessels in the region could be observed, but the cargoes are limited with the majority of them being to Bangladesh. SMXs rates regarding Far East trips ranged between $11-12.5K/day (from Middle East’s Gulf Gulf (MEG) – W. C. India (WCI)), regarding short trips between Arabian Gulf – W. C. India between $9.5-10 .5K/day and trips to the Atlantic Basin between $8.5-9.5K/day.
In the Atlantic and especially in the US Gulf the market presented improvements with more cargoes from the East Coast and the Gulf, especially at the beginning of the week. Also, the available offered capacity was reduced. SMXs rates considering transatlantic trips increased to $20-21K/day and to Asia to $24-25.5K/day. The ECSA area lost ground again this week mainly due to reduced activity regarding transatlantic trips. The worrying point is that quite a few from the east are moving into the area. Rates of SMXs as regards trips to N.A. Asia-China fell to $23.5-25K/day and for Transatlantic trips (Mediterranean/Continent) fell to $24.5-26K/day.
Continent moved lower despite that we saw more cargoes (compared to the previous week), while the number of vessels remained stable. Charterers seemed to set their pace on the market. SMX rates for round local trips moved between $17-18K/day, for trips with SCRAP cargoes to the Mediterranean between $17.5-19K/day and to Asia between $20-21.5K/day. The Mediterranean remained nervous as it awaited developments on the safe corridor for grain exports from Ukraine.A positive point was the improvement in demand for industrial cargo. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $27.5-28.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $15.5-17K/day and within the Mediterranean at $ 16.5-17.5 K/day.
In the Handies market, in Continent the market presented more movement with some loads from northern France and also Russia, but they did not seem to be enough for the climate change. Rates for the largest vessels of the category, regarding round trips, they fell to $13-14K/day, to the Mediterranean with Scrap cargoes to $13.5-14.5K/day and for Transatlantic trips to $12.5-13 ,5K /day.
The Mediterranean retreated mainly due to uncertainty surrounding the Ukrainian grain corridor. However, cargoes from Russia and Ukraine are less than in the previous period. Larger vessels rates (past 36K tonnes DWT) for intra-Mediterranean trips moved between $19-20K/day (delivery at Canakkale), to Continent between $18-19K/day (delivery to Canakkale), to the other Atlantic Basin side at $16-18K/day (Canakkale delivery) and to Asia between $21-22.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the freight market fell as the number of ships remained greater than that of cargoes. Indicatively, rates of the bigger vessels of the category regarding trips to the other side of the Atlantic Basin ranged between 4-15K/day and to Asia between $17-18K/day.
In the East Coast of South America (ECSA) area the market showed a decline, however northern Brazil was more active than the South. We saw some cargoes during the week, but not enough to improve the overall sentiment. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continents – Mediterranean) moved between $25-26K/day and to Asia between $26.5-27.5K/day.
In Asia, calmness prevailed, both in the North and South. Shipowners are looking for directions with the alternatives extremely reduced. In addition, Singapore area is burdened by more vessels than East India. In West C. India and the Gulf the gloomy market picture continued with few cargoes on the market. Far East and NOPAC round trip rates on larger vessels were closing in at $8.5-10K/day, from N.A. Asia to China at $8.5-9.5K/day and from the West C. India to China at $11-12K/day.

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