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The dry bulk cargo market continued with marginal losses, with a drop recorded in all sizes except for Capes, which showed a small increase compared to the previous week. In detail, Capes are up 4.75%, Kamsarmaxes -6.9%, Supramaxes -7.5% and Handies -3%, compared to the previous week. Thus, the BDI decreased by 1.45% (compared to the previous week) and closed at 1558 credits on Friday, May 5.
Let’s see, in more detail, how the dry bulk cargo market by vessel size moved last week, starting with CAPEs. In Asia the market moved at a slow pace due to the various holidays. Cargo volumes from Western Australia were down, driving rates to lower figures. Some cargoes from the East Coast halted the decline. Index levels on the Australia-China route (C5) closed on Friday at $8.91/tn.
In the Atlantic Basin the market started with a lot of promise as there were new cargoes while the number of vessels available was limited. The continuation of the week was not commensurate with the result that closures are in lower numbers in both the North and the South. Indexes on Friday regarding trips from Brazil to China reached up to $22.32/tn (for route C3), while rates from Continent to Asia closed at $38.84K/d (for route C9 ) and Transatlantic round trips at $22.58K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin we saw a few new cargoes which did not help the market much, as many operators used their own vessels. In the middle of the week some cargoes from the north coast of South America helped the market, while there were also some cargoes with loadings in June. For example, fares for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $14.5-16.5K/day (delivery to SE Asia), from Continent to Asia to $21.5-23.5K/day (delivery to Continent) and transatlantic round trips at $11-13K/day (Gibraltar delivery).
On the other hand, in Asia the market picked up at the end of the week, however the bearish trend continued as most players seemed reluctant to make a move this week. Indonesia-Far East round trip rates ranged from $13.5-15.5K/day (Asia delivery).
For Supramaxes-Ultramaxes Southeast Asia advanced to last week’s levels with coal cargoes holding the market back from falling. SMXs rates for travel between S. E. Asia and the Far East rose to 10-11.5K/day. Further north, in the Far East the market continued to decline despite the fact that most operators appear to have returned to work from the holidays. SMXs rates for NOPAC round trips moved to $8-9.5K/day, India round trips to $8-9.5K/day and Atlantic (BH) round trips to $8.5- 10K/day.
In the Middle East Gulf and W. C. India the market came under pressure with several outages in various regions, although rates were held at the same levels. SMXs rates for Far East trips ranged from $13-14.5K/day (from Arabian Gulf (AG) – W. C. India (WCI)), short-haul between Arabian Gulf – W. C. India at $10.5-12K /day and trips to the Atlantic Basin at $9.5-11K/day.
In the Atlantic Basin and especially the American Gulf, the week started with reduced demand. As the week progressed more cargoes for Asia and the West Coast were introduced resulting in an improved market picture towards the end of the week. SMX rates for Transatlantic trips remained at $16-17.5K/day and to Asia at $21-22.5K/day. The ECSA area continued without particular changes with stable cargo flow mainly for the second half of the month. Rates of SMXs for trips to S. E. Asia-China moved to $23.5-25K/day and for Transatlantic travel (Mediterranean/Continent) to $21.5-23K/day.
Contined was less active with a limited number of mainly scrap cargoes. SMX rates for round-trip local trips moved to $13.5-15K/day, for trips with SCRAP cargoes to the Mediterranean at $14-15.5K/day and to Asia at $18-19.5K/ day. The Mediterranean was in favor of charterers, as competition between shipowners was intense to find one of the few employment opportunities for their vessels. Indicatively, it is reported that an SMX for a journey from the Mediterranean to Asia closed at $17.5-19K/day (Canakkale delivery), to the other side of the Atlantic at $13.5-15K/day and within the Mediterranean at $ 13.5-15 K/day (outside war zones).
In the Handies market, in Continent the market was characterized by a lack of new loads. Thus, shipowners who had ships readily available were willing to reduce their ideas in order to cover their vessels. Rates for the largest vessels in the class, for round trips fell to $12.5-14K/day, to the Mediterranean with Scrap cargoes to $13-14.5K/day and for Transatlantic trips to $9.5-11K /day.
The Mediterranean was under pressure as cargo flow was restricted and capacity was concentrated. We expect to see how the market will respond to the agreement that appears to have been made for Ukrainian grain. Larger vesse rates (over 36K tonnes DWT) for intra-Med trips moved to $10-11.5K/day (delivery at Canakkale), to Continent to $10.5-12K/day (delivery at Canakkale) , to the other side of the Atlantic Basin to $9.5-11K/day (Canakkale delivery) and to Asia to $14.5-16K/day.
On the other side of the Atlantic Basin, the US Gulf took a dip due to a lack of cargo from both the Gulf and the East Coast. Many ship owners are considering moving further south. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $10-11.5K/day and to Asia from $13.5-15K/day.
In the East Coast of South America (ECSA) market moved at a slow pace due to the various holidays. The number of ships was stable, but the demand was not enough to raise the rates. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $17.5-19K/day and to Asia at $19.5-21K/day.
In Asia, activity in various regions moved at low levels, especially at the beginning of the week. Movement in the Far East, Southeast Asia and Australia was limited, while the Gulf and W. C. India were also quiet. Far East and NOPAC round trip charterers on larger vessels closed at $7-8.5K/day, from N.A. Asia to China at $9-10.5K/day and from the West C. India to China at $10.5-12K/day.