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The dry bulk cargo market started the year on a positive note, as Capes and Kamsarmaxes closed the week on a positive note. In fact, Capes recorded a double-digit increase compared to the week before the holidays. On the contrary, the smaller sizes moved downwards. In detail, Capes fell by 11.73%, Kamsarmaxes -1.92%, Ultramaxes (63) -5.94% and Handies -5.2%, compared to the previous week. Thus, the BDI fell by 61 credits, compared to the previous week and closed at 1072 credits on Friday, January 3.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessels size, starting with the CAPEs. In Asia, there was a lot of activity on the Western Australia - China route during the short week. There were also several closings and discussions and negotiations at the same or slightly higher levels than before the holiday period. The index levels on the Australia-China route (C5) closed on Friday at $7.28/tn.
In the Atlantic Basin, and especially in the Brazil region, increased demand was observed and the closings that were made were at higher levels. In the north, there was optimism for an improvement in the market despite the increased EU ETS costs. The indexes on Friday reached up to $18.29/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $30.28 K/day (for the C9 route) and Transatlantic round trips at $11.5K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin and especially in the north, the increased demand for trips to Asia pushed up rates, dragging the south on an upward path. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 8-10K/day (delivery Asia), from Continent to Asia at $ 14-16K/day (delivery in Continent) and the circular Transatlantic trips at $ 9.5-11.5K/day (delivery in Gibraltar).
On the other hand, in Asia there may not have been significant support from Australia and the North Pacific, however, a limited number of available vessels in the north led to an increase in rates. Roundtrip rates for Indonesia-Far East trades were $3-5K/day (Far East delivery).
For Supramaxes-Ultramaxes, the market in Southeast Asia remained under pressure with few new cargoes coming to the surface. UMXs rates for trades between SE Asia and the Far East were $8.5-10K/day. Further north, in the Far East, the market was quiet. The few cargoes that were on the market were covered by charterers’ vessels and shipowners are hoping for any improvement in the next two weeks, before the Chinese New Year. UMXs’ rates for round trips in the North Pacific (NOPAC) were $8-9.5K/day, for trips to W. C. India at $9.5-11K/day and for return trips to the Atlantic Basin (BH) at $7.5-9K/day.
In the Middle East Gulf and West C. Indies the market showed reduced activity as most of the operators are on vacation. We expect to see when they will return to active activity in the coming period. UMXs’ rates for trips to the Far East ranged between $9.5-11K/day (from Middle’s East Gulf (MEG) – West C. Indies (WCI)), for short trips between Middle
East Gulf – West C. India at $9.5-11K/day and for trips to the Atlantic Basin at $6.5-8K/day.
In the Atlantic Basin and especially the American Gulf, it lost any stability it had shown before the holidays. Now most of the interest was focused on cargoes to Asia. UMXs rates for Transatlantic trips reached up to $ 18-19.5K/day and to Asia at $ 19.5-21K/day. The ECSA region maintained its momentum due to limited capacity supply despite the short week due to various holidays. SMXs rates for trips to SE Asia-China moved at $ 19.5-21K/day and for Transatlantic trips (Mediterranean/Continent) at $ 17.5-19K/day.
Continent remained quiet as expected. Demand was extremely limited and capacity supply began to accumulate. The UMXs' rates for round-local trips were at $12-13.5K/day, for trips with SCRAP cargoes to the Mediterranean at $13-14.5K/day and to Asia at $14.5-16K/day. The Mediterranean showed significant improvements mainly on the western side with an increase in cargoes for the second half of the month. However, the oversupply of vessels limited any increase in rates. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $13-14.5K/day (delivery Canakkale), to the other side of the Atlantic Basin at $6-7.5K/day and within the Mediterranean at $7.5-9K/day (excluding war zones).
In the Handies market, in Continent the market moved as in the larger sizes at low speeds, with those involved clearly in a festive mood. Thus, several shipowners are exploring the possibility of moving them. The rates for the largest vessels in the category, for circular trips, reached up to $ 6.5-8K / day, to the Mediterranean with scrap cargoes at $ 7-8.5K / day and for Transatlantic trips at $ 6-7.5K / day.
The Mediterranean moved positively with several new cargoes mainly in the western side of the basin and followed by the eastern. Many more vessels need to be absorbed in order to see substantial improvements in the market. The rates of the largest vessels (over 36K DWT) for trips within the Mediterranean were at $5.5-7K/day (delivery in Canakkale), to Continent at $5-6.5K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $5-6.5K/day (delivery in Canakkale) and to Asia at $9.5-11K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market moved slowly as various holidays disrupted the flow of activity. However, there were some closures with dirty cargoes from the east coast. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged from $ 12.5-14K/day and to Asia from $ 15.5-17K/day.
The East Coast of South America (ECSA) region showed a lot of activity mainly for seasonal requests, despite the various holidays. Demand for the first half of January remains strong and leaves plenty of optimism for the coming days. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent - Mediterranean) ranged between $ 13-14.5K/day and to Asia from $ 16-17.5K/day.
In Asia, the market declined both in the north and in the south, since the flow of cargo was extremely limited and several shipowners accepted to close at lower numbers even with a few days of waiting (for the loading date). However, there are still some seasonal requirements in the market. Further west in the Gulf of the Middle East and W. C. India, the market remained out of active action so it proceeded without any particular changes. We expect more activity from next week. The rates of the largest vessels in the category for round trips in the Far East and NOPAC closed at $ 7.5-9K / day, from SE Asia to China at $ 7.5-9K / 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