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The dry bulk cargo market declined with the largest sizes recording a double-digit weekly decline and the smallest sizes closing the week in the red. Specifically, Capes fell by 18.67%, Kamsarmaxes -10.64%, Ultramaxes (63) -3.44% and Handies -2.24%, compared to the previous week. Thus, the BDI rose by 290 credits, compared to the previous week and closed at 1537 credits on Friday, November 22.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessels size, starting with the CAPEs. In Asia, the week started sluggishly, without much action. However, in the middle of the week, mobility improved, resulting in the end of the week, the rates stabilized. The index levels on the Australia-China route (C5) closed on Friday at $9.96/tn.
In the Atlantic Basin and particularly in the north, the week started calmly with limited new demands and capacity concentration. There were no changes in the rest of the week. In the south, the picture was similar with Brazil and West C. Africa moving at low speeds. The indexes on Friday reached up to $23.38/tn for the Brazil-China trips (for the C3 route), while the Continent-Asia rates closed at $40.97 K/day (for the C9 route) and the Transatlantic round trips at $22K/day (for the C8 route).
Regarding Kamsarmaxes, the Atlantic basin recorded another negative week on all routes with the biggest problem being found in the north and transatlantic trips. Some improvements were observed in the middle of the week, but they were not enough to change the negative climate. In the south, rates continued to decline with some closures for Asia-Brazil round trips being recorded in four-digit numbers. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 16-18K/day (ECSA delivery), from Continent to Asia at $ 15-17K/day (Continent delivery) and round Transatlantic trips at $ 7.5-9.5K/day (Gibraltar delivery).
On the other hand, calm prevailed in Asia. The greatest interest came from cargoes from Indonesia, while Australia and the North Pacific were calm. In the north there were some cargoes at the beginning of the week from CIS and China, but these were covered and not renewed. Roundtrip rates for Indonesia-Far East were at $10-12K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market was under pressure due to the lack of cargoes. However, rates were maintained at the same levels. UMXs rates for trips between SE Asia and the Far East went to 12.5-14K/day. Further north, in the Far East the market was maintained at the same levels mainly due to the unchanged supply of vessels. It should be noted that cargoes to the Atlantic have been limited. UMXs rates for round trips in the North Pacific (NOPAC) were $8.5-10K/day, for trips to W. C. India $10.5-12K/day and return trips to the Atlantic Basin (BH) $11-12.5K/day.
In the Middle East Gulf and West C. India the market continued to decline, with limited new cargoes. Conversely, South Africa was an attractive alternative for shipowners. UMXs rates for Far East trips ranged from $11.5-13K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short trips between Middle East Gulf – West C. India at $9.5-11K/day and trips to the Atlantic Basin at $6-7.5K/day.
In the Atlantic Basin and especially the American Gulf, there was more activity, but this was not reflected in the rates, which maintained their downward trend. The lack of cargo was the regulating factor of this trend. UMXs rates for Transatlantic trips reached up to $ 17.5-19K/day and to Asia at $ 18.5-20K/day. The ECSA region started the week with some new cargoes, which were quickly closed. However, their non-renewal and the continuous concentration of capacity brought down the rates. SMXs rates for trips to S. E. Asia-China moved to $ 19-20.5K/day and for Transatlantic trips (Mediterranean/Continent) at $ 16.5-18K/day.
Continent came under pressure as the imbalance between supply and demand favored charterers. UMXs for round-local trips moved to $14.5-16K/day, for SCRAP trips to the Mediterranean to $15.5-17K/day and to Asia to $18.5-20K/day. The Mediterranean lost ground for another week with declining demand and increasing capacity supply. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $17-18.5K/day (delivery Canakkale), to the other side of the Atlantic Basin at $7-8.5K/day and within the Mediterranean at $8.5-10K/day (excluding war zones).
In the Handies market, in Continent the market showed small improvements with more activity and business from Russia. Also scrap and grain cargoes strengthened the market. Rates for the largest vessels in the category, for circular trips reached up to $ 10.5-12K / day, to the Mediterranean with scrap cargoes at $ 11.5-13K / day and for Transatlantic trips at $ 7.5-9K / day.
The Mediterranean experienced another week without much action. Thus, rates fell further and there are no obvious signs of immediate improvement. The rates of the largest vessels (over 36K DWT) for trips within the Mediterranean ranged between $8.5-10K/day (delivery in Canakkale), to Continent from $8-9.5K/day (delivery in Canakkale), to the other side of the Atlantic Basin from $7.5-9K/day (delivery in Canakkale) and to Asia from $12.5-14K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market experienced marginal losses since the oversupply of vessels left no room for improvements. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged between $13-14.5K/day and to Asia from $16.5-18K/day.
The East Coast of South America (ECSA) region maintained its momentum. The flow of cargo was stable and in combination with the unchanged supplied capacity, a balance prevailed in the market. It should be noted that the largest vessels in the sector showed a better picture than the smaller ones. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent-Mediterranean) moved to $ 15.5-17K/day and to Asia at $ 17.5-19K/day.
In Asia and especially in the north, the market was pressured by the increasing number of vessels while the list of cargoes remained limited. The south also moved similarly. The flow of cargoes from Australia and Indonesia left no room for smiles for shipowners, while the competition from Supramaxes was also intense. Further west, in the Middle East Gulf and W. C. India, increased supplied capacity and unchanged cargo volumes drove rates to lower levels. Rates for the largest vessels in the category for round trips to the Far East and NOPAC were closing at $11-12.5K/day, from SE Asia to China at $9.5-11K/day and from West C. India to China at $7.5-9K/day.

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