News in English

BDI remained at the same levels

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios –Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market showed marginal losses, only -1.5%, with Capes moving in the red while the other sizes closed the week in the green. Weekly changes, positive or negative, in all sizes were single digits. In detail, Capes fell by 6.35%, Kamsarmaxes +0.74%, Ultramaxes (63) +8.81% and Handies +4.15%, compared to the previous week. Thus, the BDI fell by only 26 credits , compared to the previous week and closed at 1643 credits on Friday, March 21.
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 passed calmly since the miners were absent. However, there is a differentiation in the rates for April loadings. The index levels on the Australia-China route (C5) closed on Friday at $9.35/tn.
In the Atlantic Basin and particularly in the north, some closures were recorded for trips to Asia for mid-April, raising the corresponding index. Brazil started the week calmly but towards the middle of the week the market improved as more cargoes entered for the second half of April. Friday indexes reached up to $24.49/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $42.31 K/day (for the C9 route) and Transatlantic round trips at $19.95K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin and especially in the north, there was a clear lack of cargo, while there is general uncertainty and all parties involved are in a waiting phase for developments. In the south, there was more activity with a wide range of rates depending on the loading dates, mainly for trips to Asia. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 13.5-15K/day + 350-500K BB (delivery to Latin America), from Continent to Asia at $ 16-18K/day (delivery to Continent) and round Transatlantic trips at $ 9.5-11.5K/day (delivery to Gibraltar).
On the other hand, in Asia the market showed mixed trends with closings showing variations mainly for trips to the North Pacific. There was also limited interest in season charters. Roundtrip rates on Indonesia-Far East trades were at $15-17K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market lost ground during the week with activity being sluggish, while the absence of Australia was also evident. 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 started the week strongly. However, in the middle of the week the rates dropped. The North Pacific was the region that stood out. UMXs for round trips in the North Pacific (NOPAC) were $12-13.5K/day, for trips to W. C. India $13.5-15K/day and for return trips to the Atlantic Basin (BH) $13.5-15K/day.
In the Middle East Gulf and West C. Indies the market moved upwards mainly due to the mobility that occurred in the Far East and South Africa. UMXs for trips to the Far East were $10-11.5K/day (from Middle’s East Gulf (MEG) – West C. Indies (WCI)), for short trips between Middle East Gulf – West C. India $8.5-10K/day and for trips to the Atlantic Basin $6-7.5K/day.
In the Atlantic Basin and especially the American Gulf, the market continued to be in turmoil awaiting the USTR announcements. Transatlantic trips may have seen a slight increase in volume, but this was not reflected in the rates. In the majority of cases, charterers chose to use their own vessel. UMXs rates for Transatlantic trips reached up to $14-15.5K/day and to Asia at $15.5-17K/day. The ECSA region had a quiet week. There were few transatlantic cargoes which were quickly filled but this helped the market. The picture was a little better for trips to Asia. UMXs rates for trips to S.E. Asia-China moved at $18.5-20K/day and for Transatlantic trips (Mediterranean/Continent) at $17-18.5K/day.
Continent was quiet with the market moving at a low pace and limited demand. Trips to the American Gulf continued to show some interest. UMXs rates for round-local trips moved at $10.5-12K/day, for SCRAP trips to the Mediterranean at $13-14.5K/day and to Asia at $14-15.5K/day. The Mediterranean showed significant improvements as the Eastern Mediterranean was better than the Western and trips to the Americas offered a premium. 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 $ 7-8.5K/day and within the Mediterranean at $ 9-10.5K/day (excluding war zones).
In the Handies market, in Continent the market proceeded without any particular changes, with a limited number of closings. Of particular interest were cargoes with scrap in the Mediterranean and trips to West Africa. Rates for the largest vessels in the category, for round trips, reached up to $ 13-14.5K/day, to the Mediterranean with scrap cargo at $ 15-16.5K/day and for Transatlantic trips at $ 9.5-11K/day.
The Mediterranean moved at three speeds. On the one hand, demand in the Eastern Mediterranean was falling, putting pressure on rates, on the other hand, the Western Mediterranean maintained its momentum, while trips to America moved upwards. Rates of larger vessels (over 36K tons DWT) for trips within the Mediterranean moved at $ 4.5-6K/day (delivery in Canakkale), to Continent at $ 5-6.5K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $ 7-8.5K/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 was pressured by the oversupply of vessels despite the increase in the number of cargoes. It should be noted that for March cargoes, charterers had no problem seeing Chinese vessels, while for April cargoes they were not preferable. Indicatively, rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged between $ 10-11.5K/day and to Asia at $ 10-11.5K/day.
The East Coast of South America (ECSA) region was active with more cargoes, however the general picture remained unaffected. Positive points were the balance between supply and demand and the increase in cargoes for the beginning of April. 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 at $ 12.5-14K/day.
In Asia and specifically in the Far East, the market was calm, however limited capacity and steel cargoes from the north pushed up rates. In the south, the market was also balanced without significant fluctuations. Further west in the Gulf of the Middle East, there were no significant changes in rates, however, it should be noted that the Atlantic Basin is not a particularly preferred destination. Rates for the largest vessels in the category for round trips to the Far East and NOPAC were at $ 11.5-13K / day, from SE Asia to China at $ 9-10.5K / 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