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The dry bulk cargo market experienced heavy losses last week with most sizes showing double-digit decreases while Handies also reached -10%. It should be noted that Capes also fell by almost 30%. In detail, Capes fell by 29.42%, Kamsarmaxes -13.68%, Ultramaxes (63) -14.43% and Handies -9.26%, compared to the previous week. Thus, the BDI fell by 209 credits , compared to the previous week and closed at 778 credits on Friday, January 24.
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 lack of mobility from miners led rates to lower levels, recording losses day by day. Thus, the supply of vessels increased. The index levels on the Australia-China route (C5) closed on Friday at $5.85/tn.
In the Atlantic Basin and particularly in the south, the week started positively with some new demands for trips to China entering the market. However, the increase in moving vessels and the limited number of cargoes for transatlantic trips both north and south negatively affected the other routes. Friday’s indexes reached up to $17.1/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $28.54 K/day (for the C9 route) and Transatlantic round trips at $9.2K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin the market experienced another quiet week both in the north and south. In general, liquidity prevailed due to the high volume of vessels moving in the North Atlantic on the other hand and insufficient demand. In the south, there was a difference in trips and time charter rates. 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 $ 12-14K/day (delivery in Continent) and the round Transatlantic trips at $ 6-8K/day (delivery in Gibraltar).
On the other hand, in Asia we saw improvements in terms of activity more in the North Pacific and followed by Australia. However, this was not enough to absorb all this concentration of capacity of the previous days. Thus, the rates remained under pressure. Roundtrip rates for Indonesia-Far East trades were $3.5-5.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, the market in Southeast Asia was at the same levels as the previous week thanks to the support of cargoes from Australia. On the contrary, coal cargoes from Indonesia were limited. UMXs rates for trips between SE Asia and the Far East went to $5.5-7K/day. Further north, in the Far East, the market showed a further decline in rates as the steady flow of cargoes from the North Pacific was not sufficient to change the downward trend of the rates market. The remaining routes showed a shortage of cargoes. UMXs for round trips in the North Pacific (NOPAC) were in the $6-7.5K/day range, for trips to W. C. India in the $7-8.5K/day range and for return trips to the Atlantic Basin (BH) in the $5-6.5K/day range.
In the Middle East Gulf and West C. India the market was largely unchanged with the decline continuing, and we do not expect any improvements as we head towards the Chinese New Year. UMXs for trips to the Far East were in the $6.5-8K/day range between (from Middle East Gulf (MEG) – West C. India (WCI)), for short trips between Middle East Gulf – West C. India in the $6.5-8K/day range and for trips to the Atlantic Basin in the $4-5.5K/day range.
In the Atlantic Basin and especially the American Gulf, it continued its downward trend with no obvious signs of recovery in the immediate future. UMXs rates for Transatlantic trips reached up to $13.5-15K/day and to Asia at $14.5-16K/day. The ECSA region moved at two speeds. On the one hand, it moved downwards, despite the fact that the week started positively. However, the lack of demand helped to increase capacity. SMXs rates for trips to SE Asia-China moved at $14-15.5K/day and for Transatlantic trips (Mediterranean/Continent) at $12.5-14K/day.
Continent was quiet with limited cargo volumes and rates were low for shipowners, many of whom chose to move to the other side of the Atlantic Basin. UMXs rates for round-local trips were at $10-11.5K/day, for SCRAP trips to the Mediterranean at $8.5-10K/day and to Asia at $12-13.5K/day. The Mediterranean started the week on a positive note, as there was an increase in cargo flow. However, the oversupply of vessels in the previous days left no room for improvement. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $ 11-12.5K/day (delivery Canakkale), to the other side of the Atlantic Basin at $ 4.5-6K/day and within the Mediterranean at $ 7-8.5K/day (excluding war zones).
In the Handies market, in Continent the market showed marginal losses despite the fact that there was stable activity and a small decrease in the offered capacity. The rates for the largest vessels in the category, for round trips reached up to $ 6.5-8K/day, to the Mediterranean with scrap cargoes at $ 6.5-8K/day and for Transatlantic trips at $ 5.5-7K/day.
The Mediterranean remained calm with few new demands on both the eastern and western sides. Especially in the Western Mediterranean, a greater decline was observed compared to the previous period. The rates of larger vessels (over 36K DWT) for trips within the Mediterranean moved at $ 4.5-6K/day (delivery in Canakkale), to Continent at $ 4-5.5K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $ 4-5.5K/day (delivery in Canakkale) and to Asia at $ 7.5-9K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market showed signs of improvement with more mobility and a satisfactory number of closures. However, the flow of cargo was stable while the number of vessels gradually increased. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged at $ 10-11.5K/day and to Asia at $ 12.5-14K/day.
The East Coast of South America (ECSA) region moved at two speeds. On the one hand, the north was pressured as the number of vessels moving from the Mediterranean and Continent increased, while in the south the picture was somewhat better despite the decline. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent-Mediterranean) moved at $ 10.5-12K/day and to Asia at $ 12.5-14K/day.
In Asia, the lack of cargo was evident both in the north and in the south, and shipowners in several cases were forced to close some work with several days of waiting. Further west, in the Middle East Gulf and W. C. India, the market followed the path of the larger vessels after calm prevailed. The rates of the largest vessels in the category for round trips in the Far East and NOPAC closed at $ 5.5-7K / day, from SE Asia to China at $ 5.5-7K / day and from West C. India to China at $ 5.5-7K / day.

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