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Last updateΔευ, 01 Ιουλ 2024 7am

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Fall for the large sizes, the smaller ones stayed put

bulk ships 000

Iakovos (Jack) Archontakis
Commercial Manager TMC MARITIME CO.

Dr. Fotios-Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market continued with small losses, with a drop recorded in the largest sizes, while the smaller sizes moved in the green, albeit marginally. More specifically, Capes fell by 1.6%, Kamsarmaxes -8.76%, Supramaxes +1% and Handies +1.3%, compared to the previous week. Thus, the BDI fell by 3% (compared to the previous week) and closed at 1489 credits on Friday, March 24.
Let’s see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. In Asia the market experienced pressures with Western Australia and Japan not particularly active. However, support to the market came from Eastern Australia and coal cargoes. Index levels on the Australia-China route (C5) closed on Friday at $8.85/tn.
In the Atlantic Basin, attention was drawn to the accident on the railway lines in Brazil, where it is expected to cause problems in the supply of cargo to the ports during the first days of April. In terms of rates, the main route from Brazil to China showed a marginal decline, while the North Atlantic Basin also moved downwards and only Continent to Asia trips were flat. Indexes on Friday regarding trips from Brazil to China reached up to $20.45/tn (for route C3), while rates from Continent to Asia closed at $30K/d (for route C9) and Transatlantic round trips at $15.08K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic Basin the lack of cargoes, mainly of minerals, was evident both in the North and in the South. In Brazil there are loads but not enough to hold down the drop in rates. However, it is worth noting that during the week we saw an increase in future forecasts that leaves room for optimism for the next month. For example, rates for the trips from the East Coast Of South America (ECSA) to the Far East reached up to $15-17K/day (S.E. Asia delivery), from the US Gulf to Asia up to $20-22K/day (Continent delivery) and the transatlantic round trips up to $11.5-13.5K/day (Gibraltar delivery).
On the other hand, in Asia the market came under pressure as demand from both Indonesia and the North Pacific as well as Australia was down. Thus a concentration of capacity began to be observed. Indonesia-Far East round trip rates ranged between $14-16K/day.
For Supramaxes-Ultramaxes in Southeast Asia the market fell despite the fact that there were some coal cargoes from Indonesia, but not enough to provide support. SMXs rates for travel between S. E. Asia and the Far East rose to 15.5-17K/day. Further north, in the Far East the market showed bearish trends as there are few cargoes left to fill with loading dates within March. SMXs rates as regards NOPAC round trips moved to $10.5-12K/day, India round trips to $11-12.5K/day and Atlantic (BH) round trips to $13-14, 5K/day.
In the Middle East Gulf and West C. India the market came under pressure as it remained calm for most of the week. SMXs rates for Far East trips ranged between $18-19.5K/day (from Middle East’s Gulf (M3G) – West C. IIndia (WCI)), short-haul between Arabian Gulf – W. C. India at $16.5-18K /day and trips to the Atlantic Basin at $11.5-13K/day.
In the Atlantic Basin and especially the American Gulf, the week started with limited capacity offered and satisfactory cargo flow. Thus rates quickly rose, but towards the end of the week the increase in supply limited the rise of the market. SMXs rates for Transatlantic trips rose to $17-18.5K/day and to Asia $18.5-20K/day. The ECSA region started the week promisingly. However, the reduced demand quickly landed shipowners in reality. Rates of SMXs for trips to S.E. Asia-China moved to $21.5-23K/day and for Transatlantic trips (Mediterranean/Continent) to $17-18.5K/day.
Continent was held at the same levels as cargo shortages may have been observed, but capacity of supply also moved at low levels. SMX rates for round-trip local trips moved to $12-13.5K/day, for trips with SCRAP cargoes to the Mediterranean to $12-13.5K/day and to Asia to $17.5-19K/ day. The Mediterranean showed improvements thanks to mineral cargoes that strengthened the market. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $21-22.5K/day (Canakkale delivery), to the other side of the Atlantic at $14.5-16K/day and within the Mediterranean at $ 17-18.5 K/day (outside war zones).
In the Handies market, in Continent the market remained stable. The demand was increased but the number of open vessels did not allow an increase in the rates. Rates for the largest vessels in the class, for round trips rose to $11-12.5K/day, to the Mediterranean with Scrap cargoes to $13.5-15K/day and for Transatlantic trips to $10-11.5K /day.
The Mediterranean maintained Its momentum with several new cargoes, while cargoes from Russia offered a bonus. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $10.5-12K/day (delivery at Canakkale), to Continent at $10-11.5K/day (delivery at Canakkale) , to the other side of the Atlantic at $11.5-13K/day (delivery at Canakkale) and to Asia at $17.5-19K/day.
On the other side of the Atlantic Basin, the US Gulf saw quite a bit of activity at the start of the week but the continuation was not commensurate as the number of vessels increased. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between 4.5-16K/day and to Asia at $17.5-19K/day.
In the East Coast of South America (ECSA) region the market moved more or less at the same levels as last week, thanks to the few vessels vailable in the region. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15.5-17K/day and to Asia at $17-18.5K/day.
In Asia the market started the week calm and it was only towards the end of the week that we saw more action, both from Australia and Indonesia, with a small rise in rates. However, in general, the week moved at lower levels than the previous one. Further west, W. C. India and the Gulf continued to trend downwards, mainly due to reduced demand from the Gulf. In contrast, in W. C. India there was a balance between demand and supply. Far East and NOPAC round trip charterers on larger vessels were closing in at $9-10.5K/day, from N.A. Asia to China at $12-13.5K/day and from the West. C. India to China at $11.5-13K/day.

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