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The dry bulk cargo market declined further and fell below 1000 credits , with a decline in all sizes. The largest decline was recorded in the smaller sizes where Handies showed double-digit weekly losses. Specifically, Capes fell by 3.8%, Kamsarmaxes -5.88%, Ultramaxes (63) -8.79% and Handies -10.79%, compared to the previous week. Thus, the BDI fell by 61 credits , compared to the previous week and closed at 987 credits on Friday, January 17.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessel’s size, starting with the CAPEs. In Asia, the market started the week dynamically after more action was observed from the miners and closing at higher levels compared to the previous week. However, as the days passed, activity declined, cutting off the positive trend in rates. The index levels on the Australia-China route (C5) closed on Friday at $6.41/tn.
In the Atlantic Basin, and mainly in the north, the week began with an increase in demand, which absorbed part of the capacity. Towards the end of the week, the rates fell as the flow of cargo was not renewed. In the south, the picture was similar, but demand was relatively more stable compared to the north. The indexes on Friday reached up to $18.01/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $33.38 K/day (for the C9 route) and Transatlantic round trips at $15.25K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin and especially in the north the week started calmly but as the days passed the picture improved with more cargoes hitting the market. In the south there was more action throughout the week with a steady flow of cargoes to Asia for the beginning of next month. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 9-11K/day (delivery Asia), from Continent to Asia at $ 13-15K/day (delivery in Continent ) and the round Transatlantic trips at $ 7-9K/day (delivery in Gibraltar).
On the other hand, improvements were noted in Asia with satisfactory cargo volumes mainly from the North Pacific. In the south the figures for trips via Australia were lower but were helped by the better picture of the north. Roundtrip rates for Indonesia-Far East trades were at $4-6K/day (Far East delivery).
For Supramaxes-Ultramaxes, the market in Southeast Asia declined further despite the fact that there were more cargoes from Australia. However, this was not enough to change the negative sentiment and the supply-demand balance. UMXs rates for trades between SE Asia and the Far East went to $5.5-7K/day. Further north, in the Far East, the market was more active with increased volume of closures but at lower numbers due to the strong supply of vessels. However, it should be noted that more stability was observed compared to the previous period. UMXs rates for round trips in the North Pacific (NOPAC) were at $7-8.5K/day, for trips to W. C. India at $7.5-9K/day and return trips to the Atlantic Basin(BH) at $5.5-7K/day.
In the Middle East Gulf and West C. India the market continued its negative course without any significant changes. The number of vessels remained high and demand limited without leaving any particular alternatives for shipowners. Rates for UMXs to the Far East ranged from $7.5-9K/day (from Middles East Gulf (AG) – West C. Indies (WCI)), for short trips between Middle East Gulf – West C. India from $7-8.5K/day and trips to the Atlantic Basin from $4.5-6K/day.
The Atlantic Basin and especially the American Gulf were sluggish with reduced closing volume and lower rates and only towards the end of the week was there some improvement. The lack of readily available cargo was evident as interest focused on cargoes for the following month. Transatlantic rates for UMXs reached up to $16.5-18K/day and to Asia from $16-17.5K/day. The ECSA region moved at two speeds. On the one hand, there was reduced demand for the end of the month and on the other hand, there was more activity on the nearer dates but at lower rate levels. SMXs rate for trips to SE Asia-China were at $16.5-18K/day and for Transatlantic trips (Mediterranean/Continent) at $17-18.5K/day.
Continent lost ground as demand was extremely low, resulting in intense competition among shipowners. Many vessels also began to move to the other side of the Atlantic Basin. UMXs rates for round-local trips were at $11-12.5K/day, for SCRAP trips to the Mediterranean at $10.5-12K/day and to Asia at $13.5-15K/day. The Mediterranean started the week slowly as there were no cargoes. As the days went by, demand increased but not at such a rate as to limit the oversupply of vessels. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $ 12-13.5K/day (delivery Canakkale), to the other side of the Atlantic Basin at $ 5-6.5K/day and within the Mediterranean at $ 7.5-9K/day (excluding war zones).
In the Handies market, in Continent the market remained at the same levels more or less. A positive point was the limitation of the number of vessels in the region. The rates for the largest vessels in the category, for round trips, reached up to $ 6.5-8K/day, to the Mediterranean with scrap cargo at $ 6.5-8K/day and for Transatlantic trips at $ 6-7.5K/day.
The Mediterranean continued its downward trend as charterers had the upper hand due to the abundance of available vessels. The rates of larger vessels (over 36K DWT) for trips within the Mediterranean moved at $ 4-5.5K/day (delivery in Canakkale), to Continent at $ 3.5-5K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $ 3.5-5K/day (delivery in Canakkale) and to Asia at $ 8.5-10K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market showed less activity and in combination with the oversupply of vessels, the rates fell. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged between $ 10.5-12K/day and to Asia from $ 12.5-14K/day.
The East Coast of South America (ECSA) region showed more activity with many discussions and exchange of offers. There may have been a balance between supply and demand, however, charterers managed to reduce rates. 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 $ 15-16.5K/day.
In Asia, the market was pressured by the lack of new cargoes mainly in the north. In fact, several vessels began to move from the south to the north, in order to find some work and fill the time until the market recovered from the Chinese New Year. In the south, there was more activity, which was not reflected in the rates, since the oversupply of vessels did not allow any change in the negative trends. Further west in the Gulf of the Middle East and W. C. India, the market was calm, leading rates to lower levels. The rates of the largest vessels in the category for round trips in the Far East and NOPAC closed at $ 8.5-10K / day, from SE Asia to China at $ 5-6.5K / day and from West C. India to China at $ 6.5-8K / day.

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