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The dry bulk cargo market showed a new rise that reached 20%, compared to the previous week, with the main driver being the return of Asia to the action. Capes and Handies showed a 2-digit percentage weekly increase followed by the rest of the sizes. More specifically, Capes increased by 26.46%, Kamsarmaxes +8%, Supramaxes +6.6% and Handies +15%, compared to the previous week. Thus, the BDI rose by 337 credits (compared to the previous week) and closed at 2203 credits on Friday March 1st.
Let's see, in more detail, how the dry bulk cargo market by vessels size moved last week, starting with CAPEs. Asia started with plenty of activity and improvements in rates. Mid-week demand strengthened further with more cargoes and closures from Australia to China. So the week ended at the same upward pace. Index levels on the Australia-China route (C5) closed Friday at $13.65/tn.
In the Atlantic Basin the week started calmly which led to an increase in the supply of vessels. Cargo flow subsequently improved with increased demand for transatlantic and Asian trips. Particularly in the south the wide gap between charterers' and shipowners' ideas led to a limited number of closures. Indexes on Friday for trips from Brazil to China reached up to $28.77/tn (for route C3), while rates from Continent to Asia closed at $55.13K/d (for route C9 ) and Transatlantic round trips at $32.75K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin and particularly in the north the market was pressured by the reduced number of requests and only some cargoes to the other side of the Atlantic Basin gave some alternatives to the shipowners. In the south the picture was better with more cargoes from Brazil for early April. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $16-18K/day (Asia delivery), Continent to Asia at $22.5-24.5K/day (Continent delivery) and transatlantic round trips in $11-13 K/day (delivery to Gibraltar).
On the other hand, in Asia many vessels found some employment in both north and south as there were enough cargoes thus strengthening the market. Indonesia-Far East round trip rates moved to $16.5-18.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed a further uptick as the number of vessels available decreased and cargo flow was stable. SMXs rates for travel between S. E. Asia and the Far East went to 16.5-18K/day. Further north, in the Far East the market moved higher with more steel cargoes from China and cargoes from the North Pacific. SMXs rates for round trips to NOPAC moved to $12.5-14K/day, for trips to W. C. India at $9-10.5K/day and round trips across the Atlantic (BH) to $8.5- 10K/day.
In the Middle East Gulf and West C. India the market started the week strongly with shipowners asking for higher figures and demand justifying their demands. SMXs rates for Far East trips ranged between $19.5-21K/day (from Middle’s East Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle’s East Gulf – West C. India at $16.5-18 K/day and trips to the Atlantic Basin at $ 6.5-8 K/day.
In the Atlantic Basin and especially the American Gulf, there was a recession on all routes with more significant losses on the routes to Asia. The lack of cargo has led to a high concentration of capacity and the drop in rates. SMXs rates for Transatlantic trips reached up to $12.5-14K/day and to Asia $20-21.5K/day. The ECSA area declined as it faced intense competition from larger vessels. In addition many vessels from West Africa decided to move to the area adding pressure. The rates of SMXs for trips to S. E. Asia-China moved to $27-28.5K/day and for Transatlantic trips (Mediterranean/Continent ) to $17.5-19K/day.
Continent had a slow start to the week with demand holding steady and vessel supply gradually increasing. The same number went on the rest of the days. SMX rates for round-trip local trips moved to $15-16.5K/day, for trips with SCRAP cargoes to the Mediterranean at $15.5-17K/day and to Asia at $23.5-25K/ day. The Mediterranean was surrounded by good weather as the cargo list was renewed and the number of vessels remained unchanged. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $24-25.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $11-12.5K/day and within the Mediterranean at $ 12.5-14 K/day (outside war zones).
In the Handies market, in Continent the market maintained its momentum with the Baltic supplying new fertilizer cargoes. Rates for the largest vessels in the class, for round trips reached up to $13-14.5K/day, to the Mediterranean with Scrap cargoes at $13.5-15K/day and for Transatlantic trips at $11.5-13K /day.
Mediterranean proceeded with no particular changes in rates despite the fact that the volume of vessels increased. Larger vessels rates (above 36K tonnes DWT) for intra-Med trips moved to $12.5-14K/day (delivery at Canakkale), to Continent at $11-12.5K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $10.5-12K/day (Canakkale delivery) and to Asia at $19.5-21K/day.
On the other side of the Atlantic Basin, in the US Gulf the market was maintained at the same levels thanks to transatlantic trips since on the other routes demand was limited and most charterers used their own vessels. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged between $9-10.5K/day and to Asia at $13-14.5K/day.
The East Coast of South America (ECSA) was affected by the river in Argentina. The small draft favored the bigger vessels in the sector which could more easily find some employment while the smaller ones had a lot of difficulty. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent– Mediterranean) moved to $16-17.5K/day and to Asia at $21-22.5K/day.
In Asia the market appears to have returned to active activity for good with the increase in indicators for trips from north and south exceeding 20% on average. Shipowners could easily select a cargo earning higher numbers. Further west the Gulf and W. C. India continued to rise with plenty of activity in all directions. Far East and NOPAC round trip charters on larger vessels closed at $14-15.5K/day, from S. E. Asia to China at $15-16.5K/day and from the W. C. India to China at $11.5-13K/day.

Disclaimer
This report and the information contained herein it is for general information only and does not constitute an investment advice