News in English

Capes Rally Keeps Dry Bulk Market Afloat as BDI Edges Higher

By Iakovos (Jack) Archontakis

Senior Maritime Strategy Consultant - Chartering Executive & TMC Shipping  Commercial Director

and
Dr. Fotios-Evangelos Karlis
Maritime Executive & Shipping Consultant

The dry bulk market moved broadly sideways last week, as the strong performance of the Capesize segment offset corrections in the smaller vessel sizes.

On a weekly basis, Capes rose by 9.48%, while Kamsarmaxes declined by 6.3%, Ultramaxes (63) fell by 7.46% and Handies dropped by 3.76%. As a result, the Baltic Dry Index (BDI) increased by just 18 points compared with the previous week, closing at 2,028 points on Friday, March 13.

Capesize

In Asia, the market strengthened at the beginning of the week as rising fuel prices — with Brent crude surpassing $100 per barrel — supported freight rates. However, from Tuesday onwards oil prices retreated, leading to corrections in freight levels. On the demand side, cargo flows remained healthy from both miners and operators. The Australia–China route (C5) closed on Friday at $13.48 per tonne.

In the Atlantic, and particularly in the South Atlantic, the market was subdued in the early days of the week due to the wide gap between owners’ and charterers’ ideas. Activity picked up midweek as both sides began to converge. In the North Atlantic, the market moved at two speeds: transatlantic voyages recorded double-digit gains, while routes to Asia posted a marginal decline compared with the previous week. By Friday, rates stood at $29.34 per tonne for Brazil–China (C3), $45.5K per day for Europe–Asia (C9) and $23.16K per day for transatlantic round voyages (C8).

Kamsarmax

In the Atlantic, cargo volumes remained limited while vessel supply gradually increased. By midweek, however, more fixtures began to appear and rates started to stabilise, particularly in the North Atlantic and on transatlantic routes, with other routes following.

Indicatively, rates for voyages from the East Coast of South America (ECSA) to the Far East reached $21.5–23.5K per day (delivery Asia), from Europe to Asia $22–24K per day (delivery Europe), while transatlantic round voyages were assessed at $12–14K per day (delivery Gibraltar).

In Asia, stronger demand from Western Australia and Indonesia supported the market. Nevertheless, higher bunker prices and reduced Chinese imports acted as restraining factors in negotiations. Rates for round voyages in Southeast Asia–Far East were reported at $20–22K per day (delivery Far East).

Ultramax

In Southeast Asia, the market softened slightly, mainly for Indonesian coal cargoes and backhaul trips, while in Australia rates remained largely stable. Ultramax rates for voyages between Southeast Asia and the Far East were reported at $16–17.5K per day.

Further north, in the Far East, some activity was seen midweek but it was not sufficient to push rates higher. A limited number of late-March backhaul cargoes, as well as North Pacific cargoes, were easily covered. Ultramax rates for North Pacific round voyages (NOPAC) stood at $14.5–16K per day, voyages to India at $16–17.5K per day and backhaul trips to the Atlantic (BH) at $14–15.5K per day.

In the Middle East Gulf and West Coast India, the market remained virtually inactive through the Straits, with most interest centred on India, where owners’ alternatives were also limited. Ultramax rates for voyages to the Far East from West Coast India (WCI) ranged between $10.5–12K per day.

In the Atlantic, particularly in the US Gulf, the market remained firmly in charterers’ favour, forcing owners to repeatedly lower their offers. A near-term stabilisation does not appear likely. Ultramax rates were assessed at $20.5–22K per day for transatlantic voyages and $21.5–23K per day for trips to Asia.

The ECSA region moved at a slow pace due to geopolitical developments and uncertainty stemming from fluctuations in bunker prices. Activity remained limited and rates declined on most routes. Ultramax rates for voyages to Southeast Asia–China stood at $25.5–27K per day and for transatlantic trips to the Mediterranean/Europe at $23.5–25K per day.

Europe began the week at levels similar to the previous one, but rates gradually declined due to a lack of fresh cargoes. Ultramax rates for local round voyages were assessed at $20.5–22K per day, scrap cargoes to the Mediterranean at $21.5–23K per day and trips to Asia at $19–20.5K per day.

The Mediterranean lost further ground as vessel supply significantly exceeded demand. Even cargoes originating from war-affected areas failed to command any premium. Indicatively, an Ultramax for a Mediterranean–Asia voyage was fixed at $23–24.5K per day (delivery Canakkale), while trips to the other side of the Atlantic were concluded at $9–10.5K per day and intra-Mediterranean voyages at $16.5–18K per day (excluding war zones).

Handysize

In Europe, the market moved without significant changes, continuing the trend seen the previous week, as both charterers and owners preferred to maintain their positions rather than revise their ideas.

Rates for the larger vessels of the segment reached $17.5–19K per day for round voyages, $21–22.5K per day for scrap cargoes to the Mediterranean and $12–13.5K per day for transatlantic trips.

In the Mediterranean, the market showed signs of volatility amid ongoing pressure, although some positive signals emerged due to the repositioning of a few vessels. Another negative factor was that several operators employed their own ships, further limiting demand. Rates for larger Handies (above 36K dwt) stood at $10.5–12K per day for intra-Mediterranean voyages (delivery Canakkale), $10–11.5K per day to Europe, $8.5–10K per day to the other side of the Atlantic and $14.5–16K per day for trips to Asia.

Across the Atlantic, in the US Gulf, the market weakened as tonnage accumulated both in the Gulf and along the North and East Coasts (NCSA and USEC), while cargo flow remained limited throughout the week. Rates for larger vessels in the segment were reported at $20.5–22K per day for voyages to the other side of the Atlantic and $19.5–21K per day to Asia.

The East Coast of South America (ECSA) started the week with limited requirements and increasing vessel supply. Although activity improved slightly midweek, demand remained subdued. Rates for the larger vessels were assessed at $18.5–20K per day for transatlantic voyages (Europe–Mediterranean) and $17.5–19K per day for trips to Asia.

In Asia, particularly in the North, the market continued to strengthen despite the growing number of open vessels. In the South, tighter tonnage supply combined with higher bunker prices prompted owners to seek firmer rate levels.

Further west, in India and the Middle East Gulf, conditions were broadly similar to those in the larger vessel segments, with relative balance mainly observed in the Indian market. Rates for the larger Handies were reported at $14–15.5K per day for round voyages in the Far East and the NOPAC, $14.5–16K per day from Southeast Asia to China and $7.5–9K per day from West Coast India to China.

Legal Disclaimer:

This report is provided solely for general informational purposes and does not constitute investment or commercial advice. The information herein is based on sources believed to be reliable but is not guaranteed for accuracy or completeness. Any actions taken based on this content are the sole responsibility of the reader.