ΝΑΥΤΙΛΙΑ

Smaller sizes kept the market stable

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios-Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market showed marginal losses compared to the previous week. It moved at 2 speeds with large sizes declining and smaller sizes Ultramaxes and Handies showing a 2-digit weekly increase. In detail, Capes fell by 14.74%, Kamsarmaxes -5.33%, Ultramaxes (63) +13.02% and Handies +18.61%, compared to the previous week. Thus, the BDI fell by only 23 credits , compared to the previous week and closed at 792 credits on Friday, February 14.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessel’s size, starting with the CAPEs. In Asia, the cyclone in Western Australia caused major problems in the operation of ports. These anomalies seem to have negatively affected rates, which also declined. The index levels on the Australia-China route (C5) closed on Friday at $6.03/tn.
In the Atlantic Basin and particularly in the south, there were pressures due to the increasing number of vessels moving, while there was competition from vessels in Continent and the Mediterranean, since in the north there are also downward trends. The indexes on Friday reached up to $16.76/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $24.9K/day (for the C9 route) and Transatlantic round trips at $3.64K/day (for the C8 route).
Regarding Kamsarmaxes, a recession was recorded in the Atlantic basin and particularly in the north, as charterers took advantage of the limited demand for transatlantic trips and lowered their rates. In the south, the picture was similar, however, some closures were noted at the same levels as the previous week. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $8-9.5K/day (delivery Asia), from Continent to Asia at $13-15K/day (delivery in Continent ) and round Transatlantic trips at $7-9K/day (delivery in Gibraltar).
On the other hand, in Asia, the week started on a downward trend, but in the 2nd half it recovered, bringing rates back to approximately the levels of the previous week. Trips to the North Pacific were of particular interest. Rates for round trips in Indonesia-Far East moved at $7.5-9.5K/day (delivery Far East).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed great improvements with many cargoes mainly from Australia, while support came from Indonesian coal carriers to India. UMXs rates for trips between SE Asia and the Far East went to 8.5-10K/day. Further north, in the Far East the market seemed to be fully back in action with more cargoes from both the North Pacific and the Atlantic Basin. UMXs rates for round trips in the North Pacific (NOPAC) moved to $8.5-10K/day, for trips to W. C. India at $9.5-11K/day and return trips to the Atlantic Basin (BH) at $8.5-10K/day.
In the Middle East Gulf and West C. Indies the market started the week promisingly, however during the week expectations were disappointed, but rates remained at the same levels. Far East trips for UMXs ranged between $9.5-11K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short trips between Middle East Gulf – West C. India at $7-8.5K/day and Atlantic trips at $4.5-6K/day.
In the Atlantic Basin and especially the American Gulf, the market moved more slowly compared to previous weeks. However, the market showed small improvements at the beginning of the week while the rates fell towards the end. UMXs rates for Transatlantic trips reached up to $14.5-16K/day and to Asia at $15-16.5K/day. The ECSA region moved at 2 speeds. On the one hand, immediately available cargoes where charterers insisted on their ideas, despite the increase in transatlantic trips, and on the other hand, cargoes with dates towards the end of the month, where higher figures were discussed. UMXs rates for trips to SE Asia-China moved at $17-18.5K/day and for Transatlantic trips (Mediterranean/Continent) at $16-17.5K/day.
Continent was strengthened with some scrap cargoes to the Mediterranean and some cargoes to West Africa, which also paid a premium. It also seems that the flow of cargoes will continue steadily. UMXs rates for round-local trips moved at $ 8-9.5K/day, for SCRAP cargo trips to the Mediterranean at $ 7-8.5K/day and to Asia at $ 11-12.5K/day. The Mediterranean strengthened, at the beginning of the week, with more cargoes increasing the rates. Again the Western Mediterranean was the driver and the Eastern Mediterranean followed. At the end of the week a small drop in activity was observed. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $ 11.5-13K/day (delivery Canakkale), to the other side of the Atlantic Basin at $ 5.5-7K/day and within the Mediterranean at $ 6.5-8K/day (excluding war zones).
In the Handies market, in Continent the market was calm but the upward trends were maintained. Given that the number of available vessels is limited and for the rest of the month, we expect further improvements. The rates for the largest vessels in the category, for circular trips reached up to $ 8-9.5K/day, to the Mediterranean with scrap cargo at $ 9.5-11K/day and for Transatlantic trips at $ 6-7.5K/day.
The Mediterranean continued the positive trend of the previous week with a slight increase in demand from the Black Sea, while open vessels were also limited. The rates of larger vessels (over 36K tons DWT) for trips within the Mediterranean moved at $ 5.5-7K/day (delivery in Canakkale), to Continent at $ 5-6.5K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $ 4.5-6K/day (delivery in Canakkale) and to Asia at $ 9-10.5K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market remained at the same levels. A slight increase in the flow of cargoes and closures was observed mainly for transatlantic trips, however, the concentration of vessels remained high, preventing the rise in rates. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged at $ 9-10.5K/day and to Asia at $ 12-13.5K/day.
The East Coast of South America (ECSA) region moved upwards, with increased demand even for the next month. Demand was focused on the largest vessels that can easily find some work, while the picture was less good for the smaller ones. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent-Mediterranean) moved at $ 14.5-16K/day and to Asia at $ 13-14.5K/day.
In Asia, the market ran a sprint with an increase in the 3 main routes that reached 25%. In the south, Australia and in the north, cement and steel cargoes led the market to higher levels, but the main players were cargoes to W