News in English

Impressive rise for Capes

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios –Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market recorded a new increase with weekly gains recorded in all sizes. The weekly profitability of Capes was impressive with an increase that approached 50% and was followed by Ultramaxes with a double-digit increase compared to the previous week. In detail, Capes rose by 46.56%, Kamsarmaxes +3.17%, Ultramaxes (63) +10.43% and Handies +4.35%, compared to the previous week. Thus, the BDI rose by 389 credits , compared to the previous week and closed at 2052 credits on Friday, July 18.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessels size, starting with CAPEs. In Asia, the core Australia-China route improved throughout the week with steady cargo flow from major miners and operators. The Australia-China (C5) index closed at $9.62/tn on Friday.
In the Atlantic Basin, there was strong activity, particularly in the south and on the Brazil-China route for loadings towards the end of August. The market was further supported by the lack of vessels moving from Asia. Friday’s indexes reached up to $23.05/tn for the Brazil-China route (C3), while Continent-Asia rates closed at $50.56K/day (C9) and Transatlantic round trips at $31K/day (C8).
Regarding Kamsarmaxes, the rate market in the Atlantic basin moved at two speeds. On the one hand, the north was calm and on the other hand, the south moved upwards from Latin America to the Far East. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 15.5-17.5 K/day (delivery Asia), from Continent to Asia at $ 26.5-28.5 K/day (delivery in Continent) and the round Transatlantic trips at $ 21-23 K/day (delivery in Gibraltar).
On the other hand, in Asia, Indonesia and Australia offered a multitude of options to shipowners. In addition, there was increased interest in season charters, further strengthening the rates. Roundtrip rates for Indonesia-Far East rates were at $15.5-17.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, Southeast Asia remained on a positive trajectory with a steady flow of coal cargoes from Indonesia. There is also interest in period charters. UMXs rates for rates between SE Asia and the Far East went to $13.5-15K/day. Further north, in the Far East the market was quiet, with the North Pacific and China not offering particular opportunities for shipowners. UMXs for round trips in the North Pacific (NOPAC) were in the range of $12-13.5K/day, for trips to W. C. India in the range of $12.5-14K/day and for return trips to the Atlantic Basin (BH) in the range of $12.5-14K/day.
In the Middle East Gulf and West C. Indies the market continued to rise despite the oversupply of vessels as the lack of capacity in South Africa helped to increase rates. UMXs for trips to the Far East were in the range of $13.5-15K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short trips between Middle Easr Gulf – West C. India in the range of $15-16.5K/day and for trips to the Atlantic Basin in the range of $10-11.5K/day.
In the Atlantic Basin and especially the American Gulf, rates moved up with several closures to all routes for the end of July at higher levels. UMXs rates for Transatlantic trips reached up to $ 27-28.5K/day and to Asia at $ 27.5-29K/day. The ECSA region started the week dynamically but in the last few days it slowed down. All routes moved positively mainly to the north for trips at the end of the month and the beginning of the next. UMXs rates for trips to SE Asia-China moved to $ 28.5-30K/day and for Transatlantic trips (Mediterranean/Continent) at $ 27-28.5K/day.
Continent was boosted by the good image of the American Gulf and northern Brazil. Thus, several vessels moved to the other side of the Atlantic Basin, keeping the supply of capacity in the region at satisfactory levels. UMXs rates for round-local trips moved to $ 14-15.5K/day, for trips with SCRAP cargo to the Mediterranean at $ 18-19.5K/day and to Asia at $ 19-20.5K/day. The Mediterranean showed an increase in demand but this was not reflected in the rates. The supply of vessels was decreasing and demand began to increase. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $ 15.5-17K/day (delivery Canakkale), to the other side of the Atlantic Basin at $ 12-13.5K/day and within the Mediterranean at $ 12.5-14K/day (excluding war zones).
In the Handies market, in Continent the market remained stable, showing marginal losses on transatlantic trips. Several vessels moved to the other side of the Atlantic Basin in search of better opportunities, however, the supply remained at high levels. The rates for the largest vessels in the category, for round trips, reached $ 7.5-9K/day, to the Mediterranean with scrap cargo at $ 8.5-10K/day and for Transatlantic trips at $ 6.5-8K/day.
The Mediterranean followed the trend of larger vessels where demand increased but rates remained at the same levels. Rates for larger vessels (over 36K DWT) for trips within the Mediterranean were at $8.5-10K/day (delivery in Canakkale), to Continent at $7.5-9K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $6.5-8K/day (delivery in Canakkale) and to Asia at $10.5-12K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market started the week with increased demand, but after being covered during the week, the cargo list was not renewed. It should be noted that the list of vessels remains large. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged at $ 15.5-17K/day and to Asia at $ 15.5-17K/day.
The East Coast of South America (ECSA) region showed mixed trends. At the beginning of the week there was a balance between supply and demand, however, an increase in cargoes from the West Coast brought the rates to the levels of the previous week. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent - Mediterranean) ranged at $ 17.5-19K/day and to Asia at $ 16.5-18K/day.
In Asia and particularly the north, the rush of charterers to meet their requirements and increased demand to the Mediterranean and Continent raised rates. In the south, we saw increases in the largest vessels in the sector while the smaller ones remained at the same levels. Further west, in the Gulf of the Middle East and W. C. India, the upward trend of the previous days continued with intense mobility in the Gulf. The rates of the largest vessels in the category for round trips to the Far East and NOPAC closed at $ 11.5-13K / day, from SE Asia to China at $ 12-13.5K / day and from West C. India to China at $ 9.5-11K / day.

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