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Last updateΔευ, 01 Ιουλ 2024 7am

News in English

The dry bulk cargo market is in green

bulk ships 000

Iakovos (Jack) Archontakis
Commercial Manager TMC MARITIME CO.

Dr. Fotios-Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market advanced with a new rise as profits were presented by all sizes, with the Capes index increasing by over 20% (for the second week), compared to the previous week. More specifically, Capes are up 24.25%, Kamsarmaxes +11.2%, Supramaxes +13.13% and Handies +10.9%, compared to the previous week. Thus, the BDI increased by 195 credits (compared to the previous week) and closed at 1381 credits on Friday, September 15.
Let's see, in more detail, how the dry bulk cargo market by vessels size moved last week, starting with CAPEs. In Asia the week started with plenty of activity as two of the biggest charterers were in the market with cargoes. Particular support came from coal cargoes. As the week progressed activity subsided resulting in rates stabilizing. But the end of the week was just as dynamic as the beginning. Index levels on the Australia-China route (C5) closed on Friday at $8.85/tn.
In the Atlantic Basin it appeared that the north was leading the race with capacity supply tight. Thus the rates were driven to higher levels compared to the previous week. The picture in the South was also good with quite a lot of cargo from Brazil and West Africa. Indexes on Friday for trips from Brazil to China reached up to $20.47/tn (for route C3), while rates from Continent to Asia closed at $33.775K/d (for route C9) and Transatlantic round trips at $12.09K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic the balance between supply and demand clearly tilted in favor of the shipowners, as there were many cargoes of grain and ore mainly headed for Asia, while the number of ships was not enough to meet the existing demand. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $13.5-15.5K/day (Asia delivery), Continent to Asia at $23.5-25.5K/day (Continent delivery) and Transatlantic round trips at $14-16K/day (Gibraltar delivery).
On the other hand, in Asia the North Pacific was the standout, followed by Australia and Indonesia with some ore cargoes. Indonesia-Far East round trip rates moved to $12-14K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market rose led by coal cargoes from Indonesia. SMXs rates for travel between N.A. Asia and the Far East rose to 14-15.5K/day. Further north, in the Far East we saw more cargoes from northern China and the northern Pacific resulting in improved rates as well. SMXs rates for NOPAC round trips moved to $10-11.5K/day, India round trips to $10-11.5K/day and Atlantic (BH) round trips to $8-9; 5K/day.
In the Middle East Gulf and West C India the market moved up for both domestic travel and travel to Asia. SMXs rates for Far East trips ranged from $13-14.5K/day (from Middle East Gulf (MEG) – West C India’s (WCI)), short-haul between Middle East Gulf – West C India’s at $11.5-13K /day and trips to the Atlantic at $8.5-10K/day.
The Atlantic Basin and especially the US Gulf showed a large increase in demand for travel to Asia in contrast to transatlantic travel which was limited. SMX rates for transatlantic trips remained at $17.5-19K/day and to Asia at $22-23.5K/day. The ECSA region came under pressure, despite the fact that a relative balance between demand and supply prevailed. Substantial support came to the market from travel to Asia. The rates of SMXs for trips to N.A. Asia-China moved to $22.5-24K/day and for Transatlantic trips (Mediterranean/Continent ) to $21.5-23K/day.
Continent continued its positive course as the number of available beds was limited and new cargoes were constantly appearing. SMX rates for round-trip local trips moved to $17.5-19K/day, for trips with SCRAP cargoes to the Mediterranean at $16.5-18K/day and to Asia at $22.5-24K/ day. The Mediterranean showed a new rise as there are still many cargoes for the end of September that have not been filled. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $26.5-28K/day (Canakkale delivery), to the other side of the Atlantic at $17.5-19K/day and within the Mediterranean at $ 17-18.5 K/day (outside war zones).
In the Handies market, in Continent for another week gains were made. Several new cargoes of fertilizers from the Baltic have boosted shipowners' confidence. Rates for the largest vessels in the class, for round trips reached $16.5-18K/day, to the Mediterranean with Scrap cargoes at $17-18.5K/day and for Transatlantic trips at $12.5-14K /day.
The Mediterranean advanced with increased demand from the Black Sea and the Western Mediterranean. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $14.5-16K/day (delivery Canakkale), to Continent $14.5-16K/day (delivery Canakkale) , to the other side of the Atlantic at $13-14.5K/day (Canakkale delivery) and to Asia at $19.5-21K/day.
On the other side of the Atlantic, in the American Gulf the market showed a new upswing, with shipowners sticking to their ideas as increased demand allowed them to do so. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $13-14.5K/day and to Asia at $16.5-18K/day.
In the East Coast region of South America (ECSA) the market continued its upward trend. However, this rise has slowed due to reduced options for shipowners. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15-16.5K/day and to Asia at $17.5-19K/day.
In Asia and particularly in the Far East the week started quietly, but as the days passed the activity improved. In the South it appeared that shipowners were better off than charterers as the lack of tonnage supply put them in an advantageous position. However, the increase in rates was not proportionate. In the Gulf of the Middle East and W C India, however, demand was limited and the reduced number of vessels helped the market to remain at the same levels. Far East and NOPAC round trip charterers on larger vessels closed at $7.5-9K/day, from S.E. Asia to China at $9.5-11K/day and from the West C India to China at $8-9.5K/day.

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