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The dry bulk cargo market showed upward trends thanks to CAPES, which posted a large weekly gain, while the rest of the metrics were under pressure. More specifically, Capes rose by 25.3%, Kamsarmaxes -1.9%, Ultramaxes (63) -7.22% and Handies -2.12%, compared to the previous week. Thus, the BDI rose by credits compared to the previous week and closed at 1495 credits on Friday, November 8.
Let's see, in more detail, how the dry bulk cargo market by vessel size moved last week, starting with CAPEs. In Asia the continued mobility of miners combined with delays caused by weather conditions favored the market by boosting rates. Indicatively, the c5 baseline went up almost a dollar during the week. In the middle of the week there was some improvement more coal cargoes from S. Australia, but this did not last long. Index levels on the Australia-China route (C5) closed on Friday at $9.78/tn.
In the Atlantic Basin, Brazil was the star, where the demand of miners was increased. And in the north there was sufficient cargo both for trips to Asia and to the other side of the Atlantic Basin. Indexes on Friday for trips from Brazil to China reached up to $22.15/tn (for route C3), while rates from Continent to Asia closed at $40.22K/d (for route C9 ) and Transatlantic round trips at $17.68K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north, the week started strongly but thereafter activity was limited, resulting in declines on most routes and charterers having the bargaining advantage. It is worth noting that the numbers are slightly higher for December loads compared to November. For example, the rates for the journeys from the E. Coast of S. America (ECSA) to the Far East reached up to $18.5-20.5K/day (America delivery), from Continent to Asia at $16.5-18.5K/day (Continent delivery) and Transatlantic round trips at $11-13K/day (Gibraltar delivery).
On the other hand, in Asia the market lost further ground as the North Pacific and Australia were quiet and the only activity came from the Indonesia-India route. However, negotiations took place at lower levels compared to the previous week. Indonesia-Far East round trip rates moved to $9-11K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market moved at slow speeds with cargoes from Australia and Indonesia in short supply. UMXs rates for trips between S. E. Asia and the Far East went to 13.5-15K/day. Further north, in the Far East the market was calm, while the North Pacific also could not support the market. In addition, the capacity was strengthened with new vessels. UMXs rates for North Pacific (NOPAC) round trips moved to $10.5-12K/day, W. C. India round trips to $12.5-14K/day and Atlantic (BH) round trips to $ 11.5-13K/day.
In the Gulf Middle East and West C. India the market saw some movement but this was not enough to change the market's downward trend. UMXs rates for Far East trips ranged between $11.5-13K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle East’s Gulf – West C. India at $11.5-13 K/day and trips to the Atlantic Basin at $ 7-8.5 K/day.
In the Atlantic Basin and especially the American Gulf lost further ground since the supply of vessels was strengthened with vessels arriving from other regions. Also the majority of the cargo was to the other side of the Atlantic Basin. UMXs rates for Transatlantic trips reached up to $18.5-20K/day and to Asia $19.5-21K/day. The ECSA region started the week with increased demand to all routes, however increased capacity of supply mainly from West Africa led to a further drop in rates. The rates of SMXs for trips to the S. E. Asia-China moved to $19-20.5K/day and for Transatlantic trips (Mediterranean/Continent) to $17-18.5K/day.
Continent moved in Eisbein's shadow. So the few closures happened at the beginning of the week and then there was a lull. UMXs rates for round-local trips moved to $15-16.5K/day, for trips with SCRAP cargoes to the Mediterranean at $16.5-18K/day and to Asia at $20.5-22K/ day. The Mediterranean declined due to the lack of cargoes on both the western and eastern sides. In addition, cargoes from the Black Sea did not pay a satisfactory premium. For example, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $18.5-20K/day (Canakkale delivery), to the other side of the Atlantic Basin at $8-9.5K/day and within the Mediterranean at $ 9.5-11K/day (outside war zones).
In the Handies market, in Continent the market moved downwards due to the general calm that prevailed in the shadow of Eisbein. There was more fertilizer from Russia but it was trading lower than last week. Rates for the largest vessels in the class, for round trips reached up to $9.5-11K/day, to the Mediterranean with scrap cargoes at $10.5-12K/day and for Transatlantic trips at $7.5-9K/day day.
The Mediterranean for another week experienced new challenges with a limited volume of closures. It is worth noting that more grain appeared for December than the Black Sea. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $8-9.5K/day (delivery at Canakkale), to Continent at $7.5-9K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $7.5-9K/day (Canakkale delivery) and to Asia at $ 12.5-14 K/day.
On the other side of the Atlantic Basin, in the US Gulf the market showed a decline as the supply of capacity gradually increased while the volume of cargoes was not enough to reverse the negative trend. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged between $14-15.5K/day and to Asia at $18.5-20K/day.
The East Coast of South America (ECSA) region started the week strong with several closes. Most of the action is found on the larger vessels in the class. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $14.5-16K/day and to Asia at $16.5-18K/day.
In Asia, the south showed a better picture than the north, where cargo was absent. However, rates fell despite support for Australian cargoes. Further west, the Gulf, Middle East and W. C. India saw stabilizing trends as demand improved. Far East and NOPAC round trip charters for larger vessels closed at $11.5-13K/day, from S. E.. Asia to China at $10-11.5K/day and from the West C. India to China at $7-8.5K/day.

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