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BDI remained stable last week, with Panamaxes keeping the freight market at the same levels, while the other sizes declined. More specifically, capes fell by 5.8%, Kamsarmaxes +9.4%, Supramaxes -1.7%, and Handies -0.5%, compared to the previous week. Thus, the BDI was unchanged and closed at 1324 credits on Friday, December 2.
Let's see, in more detail, how the dry bulk cargo market by ship size moved last week, starting with CAPEs. In Asia the market was negatively affected by the problems created by weather conditions in port operations. We saw more cargo from Australia, but most shipowners chose to stay in the region keeping the competition high. Index levels on the Australia-China route (C5) closed Friday at $8.125/tn.
In the Atlantic Basin, Brazil stood out, showing improvements with more cargoes on the market. On the contrary, in the north, the demand was not sufficient to absorb the available vessels, resulting in a drop in the indicators of the region. Indexes on Friday regarding trips from Brazil to China reached up to $19.57/tn (for route C3), while rates from Continent to Asia closed at $28.38K/d (for route C9 ) and Transatlantic round trips at $17.83K/day (for route C8).
Considering the Kamsarmaxes in the Atlantic Basin the week started calmly but there was optimism for a rise in the market mainly in the South. The week continued at the same positive pace. In the South, rates increased while in the North, cargo flow improved, especially from the U. S. Gulf. Indicatively, rates regarding trips from the E. Coast of S. America (ECSA) to the Far East reached up to $14-17K/day (Asia delivery) and transatlantic round trips up to $14-16K/day.
On the other hand, in Asia the week started as the previous one ended, but we saw some cargoes from Australia and the North Pacific. The week continued with limited activity but also some bookings at higher levels. At the end of the week mineral cargoes were reduced causing small corrections in the rates. Indonesia-Far East round trip rates ranged berween $10-12K/day.
For the Supramaxes-Ultramaxes in Southeast Asia there may not have been as many coal cargoes but the limited supply of vessels kept the rate pace positive. SMXs rates for travel between N.A. Asia and Far East improved to 11-12.5K/day. Further north, the Far East was at the same levels as increased interest in Atlantic travel kept rares at thesamelevels. SMXs round trip NOPAC rates moved between $8.5-10K/day, W. C. India round trips between $6-7K/day and returning trips to the Atlantic Basin (BH) between $8-9K/day.
In the Middle East Gulf and W. C. India the market continued without particular changes. The only positive is that it shows the market stabilizing even at these low levels. SMXs rates for Far East trips ranged between $9.5-10.5K/day (from Middle East’s Gulf (MEG) – W. C. India (WCI)), as regards short trips between Arabian Gulf – W. C. India between $8-9 .5K/day and regarding trips to the Atlantic Basin between $6.5-7.5K/day.
In the Atlantic and especially in the US Gulf, the market remained under pressure mainly due to the oversupply of capacity. On the contrary, the forecasts for the middle of the month are favorable for shipowners as there seems to be a decrease in open vessels in the region. SMXs rates for Transatlantic trips increased to $19-20.5K/day and to Asia to $23.5-25K/day. The ECSA area did not present any particular changes as on the one hand we saw an increased demand mainly for transatlantic voyages but on the other hand there are still enough vessels available on the market. Rates of SMXs regarding trips to N.A. Asia-China fell to $22-23.5K/day and for Transatlantic trips (Mediterranean/Continent) fell to $20-21.5K/day.
Continent continued the downward trend of previous weeks as demand remained limited. SMXs rates for round-local trips moved between $12.5-14K/day, regarding trips with SCRAP cargoes to the Mediterranean between $12.5-13.5K/day and to Asia between $16-17,5K/day. The Mediterranean retreated as the only support there was from the cargoes of the western Mediterranean. Ukraine and Russia continued to offer a premium but the volume of cargo from the Black Sea was small. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $22.5-24K/day (Canakkale delivery), to the other side of the Atlantic at $13.5-14.5K/day and into the Mediterranean at $ 13-14.5 K/day.
In the Handies market, in Continent the market showed a slight increase in cargo flow, however the large number of vessels available in the region left no room for improvement. Rates for the largest ships of the category, for round trips remained at $11-12.5K/day, to the Mediterranean with Scrap cargoes at $10.5-12K/day and as regards Transatlantic voyages at $10-11.5K /day.
The Mediterranean declined further as shipowners’ options were limited and competition intense. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved between $12-13.5K/day (delivery at Canakkale), to Continent between $13.5-15K/day (delivery at Canakkale) , to the other side of the Atlantic at $14.5-16K/day (Canakkale delivery) and to Asia at $12-13.5K/day.
On the other side of the Atlantic, in the U. S. Gulf the market was calm, without much activity, as a result of which rates moved at lower levels, compared to the previous week. Indicatively, rates of the largest vessels in the category for trips to the other side of the Atlantic ranged from $13-14K/day and to Asia from $16.5-18K/day.
In the East Coast of South America (ECSA) the market was calm with limited fresh options for shipowners. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved between $21.5-23K/day and to Asia between $24-25.5K/day.
In Asia, a balance prevailed between supply and demand, with the result that the market continued without particular changes in North and South. However, it is worth noting that there was a shortage of cargo to the Atlantic. In the Middle East Gulf and the W. C. India we saw the same pressures. The number of vessels in the area may have decreased, but the volume of cargo remained low, as a result of which the rates maintained their downward trend. Rates of the biggest vessels of the category regarding round trips to the Far East and NOPAC were closing at $9-10.5K/day, from S. E. Asia to China at $10-11K/day and from the West. C. India to China at $8.5-10K/day.