Τρι09272022

Last updateΤρι, 27 Σεπ 2022 10pm

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In summer mood the dry bulk cargo market

bulk ships 000

Iakovos (Jack) Archintakis
Commercial Manager TMC MARITIME CO.

Fotios-Evangelos Karlis
Chartering Department TMC MARITIME CO.

Significant losses were presented by the dry bulk cargo market the past week. Capes were the ones that for another time presented a bigger fall and the rest sizes followed. More specifically, capes dropped by 32.2%, Kamsarmaxes by -4.12%, supramaxes by -13,75% and handies -9,79%, compared to last week. With that given, BDI dropped by 335 credits (-17,68%) and closes at 1560 credits on Friday, the 5th of August.
Let’s now see more specifically how the dry bulk cargo market moved as per vessel’s size, starting off with Capes. In Asia the market retreated as much for the local trips as for the trips to the Atlantic. It seems that charterers took advantage of the reduced demand, the increased offered capacity and the intensity that has been created between the relationship of China and the USA as well. The levels of the index regarding route Australia-China (C5) closed at $ 7,87 / tn on Friday.
In the Atlantic Basin and especially in the North it seems that it has entered the rythms of summer vacations while rather calmness prevails, while available vessels of the area are starting to increase. Northern more movement was observed and considerable discussion was made, however the image of the freight market was not respective. Indexes reached up to $22,11/tn regarding trips from Brazil to China on Friday (for route C3), while rates from the Continent to Asia closed at $34 K/ day (for route C9) and as regards transatlantic round trips at $18,3 K/ day (for route C8)
Considering Kamsarmaxes, in the Atlantic Basin new losses were noted with round routes from Asia to Brazil and back presenting the most significant losses, compared to last week. In the North increased demand for wheat cargoes is observed from Ukraine, without any bookings to be made yet. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 14-16 K/ day (delivery at Asia), to the Continent up to $32-34 K/ day (delivery at ECSA) and from the U. S. Gulf and the North Coast of South America to the Continent up to $ 16,5-18,5 K/ day (delivery at N. Continent).
On the other hand, in Asia, significant interest was presented by the routes from Indonesia while exports of coal increased. It is noteworthy that the index of round trips from Indonesia (P5) was the only one among all sizes that noted weekly increase, even a borderline one. Rates regarding round trips to Australia – Far East moved between $ 14,5-15,5 K/ day.
Considering Supramaxes – Ultramaxes, S. E. Asia moved on the lower levels compared to last week, with limited cargoes of coal and enhanced supply of vessels from the E. India and North. SMX’s rates regarding trips between S. E. Asia and the Far East dropped at $15,5-17 K/ day. Northern, in the Far East the market kept on dropping with all the cargoes available in the market being for the end of the month. SMX’s rates regarding round trips to NOPAC moved between $12-13,5 K / day, for tripa to W. C. India between $17,5-18,5 K/ day and as regards returning tripa to the Atlantic Basin (BH) between $17,5-19 K / day.
In the Middle East’s Gulf and W. C. India the market presented for another week a downward trend and only tripa to the Atlantic showed some interest while they remained on the same levels. SMX’s rates regarding trips to the Far East decreased at $ 20-21,5 K / day ( from Middle East Gulf {MEG} – W. C. India ), for short trips between MEG – W. C. India at $ 19-20 K / day and trips to the Mediterranean at $ 20-21,5 K/ day.
In the Atlantic Basin and especially in the US Gulf the market characterized by the intense competition of the owners in order to to book any of the few market’s cargo. SMX’s rates regarding transatlantic trips decreased at $22-23 K / day and to Asia at $23,5-24,5 K/ day. ECSA’s area remained under pressure, while there are few cargoes as much from Latin America as from S. E. Asia – China dropped at $32-33 K/ day and for transatlantic trips (Mediterranean -Continent) at $ 27,5-28,5 K/ day.
Continent’s market retreated due to the lack of cargoes. Many owners investigate the fact to move Northern. SMX’s rates regarding local-round trips moved between $16-17 K / day, for trips with scrap cargo to the Mediterranean between $ 15-16,5 K / day and to Asia at $18-19 K / day. In the Mediterranean the market continued to lose ground after calmness, while capacity kept on gathering. Indicatively, it is claimed that an SMX for trips to the Mediterranean to Asia closed at $17-18 K / day (delivery at Canakkale), to the other side of the Atlantic Basin at $ 17-18,5 K/ day and in the Mediterranean at $ 17,5-18,5 K / day.
As regards Handies market, in Continent the market kept being under pressure regarding all routes. Only some cargoes to the W. Mediterranean presented some activity, but again it was not enough in order the sentiment to change. Rates regarding the bigger vessel’s of the category, for round trips dropped at $ 15,5-16,5 K / day, to the Mediterranean with scrap cargoes at $ 14-15,5 K / day and for transatlantic trips at $ 13-14 K / day.
In the Mediterranean the market kept on being calm, without any significant activity with few bookings. Rates of the bigger vessels (past 36 K tonne DWT) for trips in the Mediterranean moved between $14,5-15,5 K/ day (delivery at Canakkale), to the Continent at $15-16 K / day ( delivery at Canakkale), to the other side of the Atlantic Basin at $13,5-15 K / day (Delivery at Canakkale) and to Asia at $17-18 K / day.
On the other side of Atlantic Basin, the U. S. Gulf presented a new rate’s drop, since the number of the vessels remaining steadily bigger that the cargoes that exist in the market. Indicatively, rates of the bigger vessels of the category regarding trips to the other side of the Atlantic Basin dropped at $ 16,5-17,5 K / day and to Asia at $ 15-16 K / day.
ECSA’s market was calm. Most cargoes were covered and charterers preferred to stay in order the market to be under more pressure. With that given, rates of the bigger vessels from ECSA area for transatlantic trips (Continent-Mediterranean) moved between $29,5-30,5 K / day and to Asia at $28-29.5 K / day.
In Asia, the lack of cargoes was obvious in all the respective markets. Thus a new loss was noted regarding rates while the up to date indications were not hopefull regarding the course of the market in this side of the planet. Rates of the bigger vessels of the category regarding round trips to the Far East and NOPAC closed at $16,5-18 K / day, from the S. E. Asia to China at $17-18,5 K / day and from W. C. India to China at $14,5-16 K / day.

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