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The dry bulk cargo market progressed positively with an increase recorded in all sizes except for Panamaxes, which showed a marginal drop compared to the previous week. More specifically, Capes are up 6%, Kamsarmaxes -0.6%, Supramaxes +9.6% and Handies +5%, compared to the previous week. Thus, the BDI increased by 4.81% (compared to the previous week) and closed at 1504 credits on Friday, April 21.
Let’s see, in more detail, how the dry bulk cargo market by ship size moved last week, starting with CAPEs. In Asia the week got off to a sluggish start as demand was limited and there were plenty of vessels available in the region intensifying competition and driving down rates. Mid-week the weather improved with more cargo from Eastern Australia, however the end of the week was calm. Index levels on the Australia-China route (C5) closed on Friday at $8.675/tn.
In the Atlantic Basin the market was better mainly in the North Atlantic as demand improved from mid-week onwards. While activity also improved in the South with several cargoes from Brazil and W. C. Africa. Indexes on Friday for trips from Brazil to China reached up to $21.7/tn (for route C3), while rates from Continent to Asia closed at $35.75K/d (for route C9 ) and Transatlantic round trips at $15.9K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin the open list was short, while there were quite a few cargoes to be covered, thus giving the shipowners the opportunity to take advantage and raise the rates levels somewhat. For example, rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $14.5-16.5K/day (delivery to SE Asia), from Continent to Asia to $26.5-28.5K/day (delivery to Continent) and transatlantic round trips at $14-16K/day (Gibraltar delivery).
On the other hand, in Asia the picture was satisfactory with several cargoes of minerals from Indonesia and Australia improving the picture of the rates market during the week. However, the region’s increased available capacity restrained the rise in fares. Indonesia-Far East round trip rates ranged between $11-13K/day.
For Supramaxes-Ultramaxes in Southeast Asia, the week started strongly with some coal cargoes, however the follow-on was not commensurate as after these cargoes were met demand did not renew. SMXs rates for travel between S. E. Asia and the Far East rose to 12-13.5K/day. Further north, in the Far East the market was boosted by several cargoes of nickel and steel, thus improving its overall picture. SMXs fares for NOPAC round trips moved to $10-11.5K/day, India round trips to $9-10.5K/day and Atlantic (BH) round trips to $10-11; 5K/day.
In the Middle East Gulf and W. C. India the market showed bearish trends as demand remained low during the Eid period. SMXs rates for Far East trips ranged from $12.5-14K/day (from Arabian Gulf (AG) – W. C. India (WCI)), short-haul between Arabian Gulf – W. C. India at $9-10.5K /day and trips to the Atlantic at $9.5-11K/day.
In the Atlantic Basin and especially the American Gulf continued in higher numbers. Leading this trend were cargoes of grain and petcoke to Asia. SMXs rates for Transatlantic trips rose to $18.5-20K/day and to Asia $24-25.5K/day. The ECSA region continued as the previous week ended, ie with increased rates. The demand for vessels was high and the supply of capacity was limited. The rates of SMXs for trips to N.A. Asia-China moved to $21.5-23K/day and for Transatlantic trips (Mediterranean/Continent) to $21.5-23K/day.
Continent moved up thanks to a lack of available vessels while cargo flow remained stable. SMX rates regarding round local trips moved to $14.5-16K/day, for SCRAP trips to the Mediterranean at $15-16.5K/day and to Asia at $18-19.5K/day day. The Mediterranean was active as charterers appeared to have returned from their Easter holidays. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $19-20.5K/day (Canakkale delivery), to the other side of the Atlantic at $13.5-15K/day and into the Mediterranean at $ 15.5-17 K/day (outside war zones).
In the Handies market, in Continent the market showed a new rise with the supply-demand balance in favor of shipowners. Rates for the largest vessels in the class, for round trips rose to $12.5-14K/day, to the Mediterranean with Scrap cargoes to $13.5-15K/day and for Transatlantic trips to $10-11.5K /day.
The Mediterranean retreated after activity was limited compared to the previous week. However, there were some steel and grain shipments that helped the market. Larger vessel rates (over 36K tones DWT) for intra-Med trips moved to $13-14.5K/day (delivery at Canakkale), to Continent at $12-13.5K/day (delivery at Canakkale) , to the other side of the Atlantic at $11-12.5K/day (Canakkale delivery) and to Asia at $14.5-16K/day.
On the other side of the Atlantic Basin, the American Gulf showed an increase. Cargoes from the East Coast may have been absent but support came from the Gulf with many cargoes of grain to the other side of the Atlantic. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $13.5-15K/day and to Asia at $14.5-16K/day.
In the East Coast of South America (ECSA) region the market saw a big increase with the majority of routes moving for the large vessels above 20K per day. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $20-21.5K/day and to Asia at $19-20.5K/day.
In Asia and particularly in South East Asia there was a shortage of readily available vessels as many ships found employment in some work from Australia. On the contrary, the picture further north was completely different with an oversupply of ships and few cargoes. The picture in the W. C. India and the Gulf was similar, leading to a reduction in rates. Far East and NOPAC round trip charterers on larger vessels closed at $8-9.5K/day, from S. E. Asia to China at $10-11.5K/day and from the W. C.. India to China at $11.5-13K/day.