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The dry bulk cargo market continued the negative trend of the previous weeks with the larger sizes dropping the general index, while the smaller sizes showed greater stability. In detail, Capes fell by 19.71%, Kamsarmaxes -10.47%, Ultramaxes(63) -1.48% and Handies +1.21%, compared to the previous week. Thus, the BDI fell by 233 credits compared to the previous week and closed at 1576 credits on Friday, October 18.
As you can see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. In Asia the week started strongly with a volume of coal and mineral cargoes entering the market. However, with the passage of days and the closing of these loads. Demand was not renewed and the climate worsened. Benchmark benchmarks on the Australia-China route (C5) closed Friday at $8.97/tn.
In the Atlantic Basin, in particular West Africa and South Brazil, were calm as the gap between the ideas of charterers and shipowners did not allow the volume of closures to increase. In the north, only the transatlantic trips that showed any interest stood out. Indexes on Friday reached for trip from Brazil to China at $22.1/tn (for route C3), while rates from Continent to Asia closed at $41.1K/d (for route C9 ) and Transatlantic round trips at $19K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic basin and in particular the north presented a better picture than the south. The clearing of much of the region's open vessels has mainly helped transatlantic travel by holding down the drop-in rates. In contrast, trips to Asia lost almost 2K usd per day compared to the previous week. A similar picture in Brazil where day by day the route to Asia, P6, was receding. For example, the rates for the trips from the E. Coast of S.. Americas (ECSA) to the Far East reached up to $25-27K/day (Americas delivery), Continent to Asia at $19-21K/day (Continent delivery) and transatlantic round trips at $8-10 K/day (delivery to Gibraltar).
On the other hand, in Asia the lack of cargoes, the increase in available vessels and the negative future forecasts brought down the freight market. The routes from the North Pacific and Australia followed the same path. Indonesia-Far East round trip rates moved to $12-14K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed losses as both coal cargoes from Indonesia and iron ore and wheat cargoes from Australia were limited. UMXs rates for travel between S. E. Asia and the Far East went to 17.5-19K/day. Further north, in the Far East the market declined due to both the absence of steel cargoes and the calm that prevailed in the North Pacific. UMXs rates for North Pacific (NOPAC) round trips moved to $13.5-15K/day, India round trips to $14-15.5K/day and Atlantic (BH) round trips to $ 14.5-16K/day.
In the Middle East Gulf and West C. India the market showed satisfactory activity keeping the charter market more or less at the same levels. There was additional support from South Africa where charterers were struggling to find vessels for their cargoes. UMXs rates for Far East trips ranged from $14-15.5K/day (from Middle’s East Gulf (MEG)– West C. India (WCI)), for short-haul trips between Middle East Gulf – West C. Indies at $12.5-14 K/day and trips to the Atlantic Basin at $8.5-10 K/day.
In the Atlantic Basin and especially the American Gulf moved at lower levels compared to the previous week, despite the increased activity observed. UMXs rates for Transatlantic trips reached up to $21.5-23K/day and to Asia $24.5-26K/day. The ECSA region showed improvements. The south may be steady in terms of activity, but capacity in the north has decreased, strengthening the market. The rates of SMXs for trips to the S. E. Asia-China moved to $22.5-24K/day and for Transatlantic travel (Mediterranean/Continet) to $18.5-20K/day.
Continent moved up with several new cargoes. However, the main parameter that had a positive effect was the rise of the Western Mediterranean and the American Gulf. UMXs rates for circular-local trips moved to $17-18.5K/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 an increase in rates mainly due to increased demand from the Western Mediterranean. Also the supply of vessels was limited with most vessel owners looking for some cargo that would bring them a premium on the rate. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $20-21.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $10.5-12K/day and within the Mediterranean at $ 13-14.5K/day (outside war zones).
In the Handies market, in Continent the market was pressured by the oversupply of vessels and the limited number of cargoes. Rates for the largest vessels in the class, for round trips reached up to $11-12.5K/day, to the Mediterranean with scrap cargoes at $11.5-13K/day and for transatlantic trips at $9.5-11K/day day.
The Mediterranean may have seen quite a bit of activity with demand up but all discussions took place at rate levels lower than last week. The improved image of northern Continent positively affected the western side. Larger vessels rates (above 36K tonnes DWT) for intra-Med trips moved to $9.5-11K/day (delivery at Canakkale), to Continent at $9-10.5K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $8-9.5K/day (Canakkale delivery) and to Asia at $12.5-14K/day.
On the other side of the Atlantic Basin, in the US Gulf the market showed upward trends with most charterers seeking to secure a vessel for their cargoes. It is worth noting that most shipowners preferred to remain in the Atlantic Basin. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between $14-15.5K/day and to Asia at $19.5-21K/day.
The East Coast of South America (ECSA) region moved upwards after a period of recession. A positive point in this trend is the reduction of competition from the larger sizes. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $16.5-18K/day and to Asia at $17.5-19K/day.
In Asia the market remained flat despite an increase in the volume of capacity offered. In the south for purchase, he found support from Australia. In the north shipowners sought attractive alternatives from the North Pacific or Australia. Further west, in the Middle East Gulf and W. C. India cargo shortages were evident and the market lost further ground. Far East and NOPAC round trips on larger vessels in the class closed at $12.5-14K/day, from S. E. Asia to China at $10.5-12K/day and from the West C. India to China at $10.5-12K/day.

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