News in English

Waiting for the sentiment change due to USTR

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios –Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market showed improvements, mainly driven by Panamaxes, which showed a double-digit increase compared to the week before Easter (11/4), followed by Capes and Ultramaxes. Handies recorded marginal losses. In detail, Capes rose by 4.77%, Kamsarmaxes +17.38%, Ultramaxes (63) +4.05% and Handies -2.5%, compared to 11/4. Thus, the BDI rose by 99 credits, compared to before Easter and closed at 1373 credits on Friday, April 25.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessels size, starting with CAPEs. In Asia, the climate improved significantly in the middle of the week with increased cargo flow from miners. In addition, many vessels found some employment, further limiting the capacity offered. The index levels on the Australia-China route (C5) closed on Friday at $7.82/tn.
In the Atlantic Basin, improved demand in the south, Brazil and West Africa, and the rise in FFAs brought optimism to shipowners, who raised their ideas, earning over a dollar per ton at the end of the week. In the north there was also a positive climate with several closures for trips to Asia. Friday's indexes reached up to $19.76/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $36.59 K/day (for the C9 route) and Transatlantic round trips at $14.21K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north, the climate was positive, mainly driven by cargoes from the North Coast of South America (NCSA) to Asia. On the contrary, transatlantic trips were less. In the south, there was an increase in closures in the middle of the week with rates fluctuating at higher figures for trips to Asia. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 15-17K/day (delivery Asia), from Continent to Asia at $ 17-19K/day (delivery in Continent ) and round Transatlantic trips at $ 10-12K/day (delivery in Gibraltar).
On the other hand, in Asia the week started on the rise with new demands. However, the replenishment rate was not proportional, resulting in a drop in rates in the middle of the week. Only towards the end of the week did we see some cargo from Indonesia and Australia. The rates for round trips in Indonesia-Far East moved at $ 10-12K /day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market maintained its momentum with several coal cargoes from Indonesia mainly to W. C. India. Thus, bookings were recorded at slightly higher levels compared to the previous period. The rates of UMXs for trips between SE Asia and Far East went to 13-14.5K /day. Further north, in the Far East the market proceeded without any particular changes. The North Pacific was sluggish, however there were some cargoes to West Africa. The developments with the USTR are expected to positively impact the market in the coming period. UMXs rates for round trips in the North Pacific (NOPAC) were at $10-11.5K/day, for trips to W. C. India at $13-14.5K/day and return trips in the Atlantic Basin (BH) at $14-15.5K/day.
In the Middle East Gulf and West C. India the market showed increased activity especially for cargoes loaded in the last days of April and with a main destination in Bangladesh. Rates for UMXs for Far East trips ranged from $13.5-15K/day (from Middle East’s Gulf (MEG) – West C. India (WCI)), for short trips between Middle East’s Gulf – West C. India at $13.5-15K/day and trips to the Atlantic Basin at $11-12.5K/day.
The Atlantic Basin and especially the American Gulf were under pressure due to the lack of activity. Thus, several shipowners considered moving further south. However, the positive news from the USTR is expected to improve the market picture in the coming period. Rates for UMXs for Transatlantic trips reached up to $13-14.5K/day and to Asia at $13.5-15K/day. The ECSA region saw an increase in rates with demand for the end of the month being high mainly for trips to the other side of the Atlantic Basin, while supplied capacity was limited. In addition, the increase in larger sizes left room for growth for this size for trips to China. UMXs rates for trips to SE Asia-China moved to $ 19.5-21K/day and for Transatlantic trips (Mediterranean/Continent) to $ 19-20.5K/day.
The dry bulk cargo market showed improvements, mainly driven by Panamaxes, which showed a double-digit increase compared to the week before Easter (11/4), followed by Capes and Ultramaxes. Handies recorded marginal losses. In detail, Capes rose by 4.77%, Kamsarmaxes +17.38%, Ultramaxes (63) +4.05% and Handies -2.5%, compared to 11/4. Thus, the BDI rose by 99 credits, compared to before Easter and closed at 1373 credits on Friday, April 25.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessels size, starting with CAPEs. In Asia, the climate improved significantly in the middle of the week with increased cargo flow from miners. In addition, many vessels found some employment, further limiting the capacity offered. The index levels on the Australia-China route (C5) closed on Friday at $7.82/tn.
In the Atlantic Basin, improved demand in the south, Brazil and West Africa, and the rise in FFAs brought optimism to shipowners, who raised their ideas, earning over a dollar per ton at the end of the week. In the north there was also a positive climate with several closures for trips to Asia. Friday's indexes reached up to $19.76/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $36.59 K/day (for the C9 route) and Transatlantic round trips at $14.21K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north, the climate was positive, mainly driven by cargoes from the North Coast of South America (NCSA) to Asia. On the contrary, transatlantic trips were less. In the south, there was an increase in closures in the middle of the week with rates fluctuating at higher figures for trips to Asia. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 15-17K/day (delivery Asia), from Continent to Asia at $ 17-19K/day (delivery in Continent) and round Transatlantic trips at $ 10-12K/day (delivery in Gibraltar).
On the other hand, in Asia the week started on the rise with new demands. However, the replenishment rate was not proportional, resulting in a drop in rates in the middle of the week. Only towards the end of the week did we see some cargo from Indonesia and Australia. The rates for round trips in Indonesia-Far East moved at $ 10-12K /day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market maintained its momentum with several coal cargoes from Indonesia mainly to W. C. India. Thus, closings were recorded at slightly higher levels compared to the previous period. The rates of UMXs for trips between SE Asia and Far East went to 13-14.5K /day. Further north, in the Far East the market proceeded without any particular changes. The North Pacific was sluggish, however there were some cargoes to West Africa. The developments with the USTR are expected to positively impact the market in the coming period. UMXs rates for round trips in the North Pacific (NOPAC) were at $10-11.5K/day, for trips to W. C. India at $13-14.5K/day and return trips in the Atlantic Basin (BH) at $14-15.5K/day.
In the Middle East Gulf and West C. India the market showed increased activity especially for cargoes loaded in the last days of April and with a main destination in Bangladesh. Rates for UMXs for Far East trips ranged from $13.5-15K/day (from Middle East’s Gulf (MEG) – West C. India (WCI)), for short trips between Middle East Gulf – West C. India at $13.5-15K/day and trips to the Atlantic Basin at $11-12.5K/day.
The Atlantic Basin and especially the American Gulf were under pressure due to the lack of activity. Thus, several shipowners considered moving further south. However, the positive news from the USTR is expected to improve the market picture in the coming period. Rates for UMXs for Transatlantic trips reached up to $13-14.5K/day and to Asia at $13.5-15K/day. The ECSA region saw an increase in rates with demand for the end of the month being high mainly for trips to the other side of the Atlantic Basin, while supplied capacity was limited. In addition, the increase in larger sizes left room for growth for this size for trips to China. UMXs rates for trips to SE Asia-China moved to $ 19.5-21K/day and for Transatlantic trips (Mediterranean/Continent) to $ 19-20.5K/day.

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