www.TheSeaNation.gr

The trend of the general dry bulk cargo index continued with a new decline, with the biggest drop occurring in the Capes, while in the other sizes the losses were marginal. More specifically, Capes fell by 32.1%, Kamsarmaxes -0.6%, Supramaxes -0.35%, and Handies -2.2%, compared to the previous week. Thus, the BDI fell by 11.4% (compared to the previous week) and closed at 676 credits on Friday, January 27.
Let’s see, in more detail, how the dry bulk cargo market by ship size moved last week, starting with CAPEs. In Asia, there was a further decline in individual indexes, compared to the previous week. However, there is optimism that the market picture will stabilize soon, as demand from the north and south shows improvement. Index levels on the Australia-China route (C5) closed on Friday at $6.3/tn.
The Atlantic remained under pressure as demand from Brazil was limited. in addition, the poor image of the Asian market has led many shipowners to move to southern Africa. Indexes on Friday for trips from Brazil to China reached up to $16.88/tn (for route C3), while rates from Europe to Asia closed at $19.84K/d (for route C9 ) and Transatlantic round trips at $5.78K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic the week started with limited mobility. In the north cargoes were scarce and the charterers preferred to wait by pressing the rates. In the South the picture was slightly better, in terms of discussions between shipowners and charterers, but this was not reflected in charters which moved to lower levels. For example, rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $24-26K/day (ECSA delivery), Continent to Asia at $17-19K/day (Continent delivery) and transatlantic round trips at $6.5 -8.5 K/day (delivery in Continent).
On the other hand, in Asia the market was quiet as they were largely absent from their offices for most of the week. Activity improved towards the end of the week with some closes being slightly higher than last week. Indonesia-Far East round trip rates ranged between .5-8.5K/day.
Supramaxes-Ultramaxes in Southeast Asia saw improvements after a period of continuous decline. Driving this rise were coal shipments from Indonesia to India. SMXs rates for travel between N.A. Asia and the Far East rose to 7.5-9K/day. Further north, the Far East was quiet due to Chinese New Year celebrations. SMXs rates for NOPAC round trips moved to $5.5-7K/day, India round trips to $5.5-7K/day and Atlantic (BH) round trips to $5.5- 7K/day.
In the Middle East Gulf and W. C. India the market had a slow start but the rest of the week was better with more movement. SMXs rates for Far East trips ranged between $9-10.5K/day (from Middle East Gulf (MEG) – W. C. India (WCI)), short-haul between Arabian Gulf – W. C India at $7.5-9K /day and trips to the Atlantic at $5.5-7K/day.

In the Atlantic and especially in the American Gulf the market showed some signs of improvement as a balance prevailed between demand and supply. Thus, the ship-owners managed to raise the market levels. SMX rates for Transatlantic trips remained at $9-10.5K/day and to Asia rose to $13-14K/day. The ECSA area was more active, but several closes were made at the same lows as the previous days. The rates of SMXs for trips to N.A. Asia-China moved between $13.5-15K/day and for Transatlantic travel (Mediterranean/Continent) to $10.5-12K/day.
Continent lost further ground due to the apparent lack of cargo. SMX rates for round-local trips moved between $7.5-9K/day, for trips with SCRAP cargoes to the Mediterranean at $6-7.5K/day and to Asia at $11-12.5K/day day. The Mediterranean continued to be under pressure, with demand limited. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $12-13.5K/day (Canakkale delivery), to the other side of the Atlantic at $7-8K/day and within the Mediterranean at $8- 9.5 K/day (outside war zones).
In the Handies market, in Continent there were some grain and scrap cargoes which kept the market active and kept rates flat. Rates for the largest vessels in the class, for round trips were maintained at $7.5-9K/day, to the Mediterranean with Scrap cargoes at $7-8K/day and for Transatlantic trips at $6-7K/day.
In the Mediterranean the market remained stable as there were some new cargoes that filled the readily available vessels. The Black Sea is still not providing the support needed to see an improvement in the market. Larger vessel rates (above 36K tonnes DWT) for intra-Med trips moved to $7.5-8.5K/day (delivery at Canakkale), to Continent at $7-8K/day (delivery at Canakkale) , to the other side of the Atlantic at $6.5-8K/day (delivery to Canakkale) and to Asia at $10-11K/day.
On the other side of the Atlantic, in the US Gulf the market saw a further drop in rates as there was plenty of excess capacity, and cargo flow was limited. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged berween $7.5-9K/day and to Asia at $11-12K/day.
In the East Coast region of South America (ECSA) the market continued to decline. There have been quite a few cargoes, but the market is heavily burdened by accumulated tonnage and moving vessels to the area. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved between $10-11.5K/day and to Asia at $13.5-14.5K/day.
In Asia the market remained stagnant, both in the Far East and Southeast Asia. In the North, charterers and shipowners appeared to have returned with more appetite for work from their holidays towards the end of the week, while in the South there was also a balance between ships and cargoes. Further west, W C India moved at a slow pace as cargo flow was limited. Far East and NOPAC round trip charters on larger vessels closed at $7-8.5K/day, from N.A. Asia to China at $8-9K/day and from the West. India to China at $5.5-7K/day.