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The downward trend of the dry bulk cargo market continued with a decline in all sizes compared to the previous week. Capes and Supramaxes saw the biggest losses, followed by Panamaxes and Handies. More specifically, Capes are down 20%, Kamsarmaxes -8.43%, Supramaxes -12.17% and Handies -3.93%, compared to the previous week. Thus, the BDI decreased by 212 credits (compared to the previous week) and closed at 1172 points on Friday, May 26.
Let’s see, in more detail, how the dry bulk cargo market by vessel size moved last week, starting with CAPEs. In Asia the week started sluggishly, however as the days progressed we saw more movement from the three main charterers on the Western Australia to China route, however rates moved lower than last week. Index levels on the Australia-China route (C5) closed on Friday at $8.36/tn
In the Atlantic Basin the picture was similar to Asia as the market was quiet at the beginning of the week and revived towards the end of the week without changing the downward trend of rates. Indexes on Friday for trips from Brazil to China reached up to $19.49/tn (for route C3), while rates from Continent to Asia closed at $28.35K/d (for route C9 ) and Transatlantic round trips at $15.86K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin the lack of cargoes was evident and activity limited resulting in the market moving at lower levels compared to the previous week in all regions. For example, rates for the trips from the E. Coast Of S. America (ECSA) to the Far East reached up to $22.5-24.5K/d (S.America delivery), Continent to Asia up to $17-19K/d (Continent delivery) and the round Transatlantic trips up to $7.5-9.5K/day (Gibraltar delivery).
On the other hand, in Asia we saw another quiet week with cargo flow limited and a plethora of vessels open. Thus the opportunity was given to the charterers to impose their ideas. Only Indonesia was active but this was not enough to change the overall picture. Indonesia-Far East round trip rates moved between $7-9K/day (Far East delivery).
For Supramaxes-Ultramaxes Southeast Asia continued without particular changes as there was a balance between supply and demand. SMXs rates for travel between S.E. Asia and the Far East fell to 10-11.5K/day. Further north, in the Far East the market started the week briskly with several steel cargoes from China. But the continuation of the week was not comparable, with the result that the week closed at the same levels as the previous one. SMXs round trip NOPAC rates ranged between $6.5-8K/day, W. C. India round trips $7.5-9K/day and Atlantic Basin (BH) round trips $8.5- 10K/day.
In the Middle East Gulf and West C. India the market continued without particular changes but there is a negative climate as demand was subdued. SMXs rates for Far East trips ranged between $12.5-14K/day (from Middle East Gulf (MEG) – West C India (WCI)), short-haul between Middle East Gulf – West C. India at $10-11.5K /day and trips to the Atlantic Basin at $7.5-9K/day.
In the Atlantic Basin and especially the American Gulf, there was a sharp drop in all routes due to the large increase in available vessels. Thus, the closings that occurred at the end of the week were at lower levels than those that occurred at the beginning. SMXs transatlantic rates fell to $14-15.5K/day and to Asia to $18.5-20K/day. ECSA’s area continued to decline as demand on both sides of the Atlantic Basin was not enough to cover the existing capacity on offer. The rates of SMXs for trips to S. E. Asia-China moved to $19.5-21K/day and for Transatlantic trips (Mediterranean/Continent) to $16.5-18K/day.
In Continent the market continued the downward trend of the last few weeks since the cargo list in the region is extremely limited. SMX rates for round-trip local trips moved to $10-11.5K/day, for trips with SCRAP cargoes to the Mediterranean at $9.5-11K/day and to Asia at $14.5-16K/ day. The Mediterranean continued to lose ground. The only area that showed signs of life was the Western Mediterranean with some cargoes But these were quickly covered by the vessels of the north. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $16.5-18K/day (Canakkale delivery), to the other side of the Atlantic Basin at $9-10.5K/day and into the Mediterranean at $ 10-11.5 K/day (outside war zones).
In the Handies market, in Continent the market declined further, despite the fact that there was a steady flow of cargo, but the supply of vessels was strong. Rates for the largest vessels in the class, for round trips fell to $8.5-10K/day, to the Mediterranean with Scrap cargoes to $8.5-10K/day and for Transatlantic trips to $7-8.5K /day.
The Mediterranean continued to decline due to a lack of new cargoes. It should be noted that at the beginning of the week we saw some loads in the western Mediterranean, but these were quickly closed. Larger vessel rates (above 36K tonnes DWT) for intra-Med trips moved to $9-10.5K/day (delivery at Canakkale), to Continent at $10.5-12K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $8.5-10K/day (delivery to Canakkale) and to Asia at $10.5-12K/day.
On the other side of the Atlantic Basin, in the American Gulf the market showed a lack of cargoes as a result of which several ships moved to the South in order to find some employment. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between 1.5-13K/day and to Asia at $16.5-18K/day.
In the East Coast of South America (ECSA) the market showed some mobility but it was not enough to change the negative climate. Also according to the data so far it seems that this pressure will continue. Thus, the charterers of larger vessels the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15.5-17K/day and to Asia at $17.5-19K/day.
In Asia the market remained at the same levels in both the North and the South, as in general a balance prevailed between demand and supply. Further west, in the Gulf of the Middle East and W. C. India the picture is slightly worse as most routes experienced minor losses. Far East and NOPAC round trip charterers on larger vessels closed at $8-9.5K/day, from S. E. Asia to China at $9-10.5K/day and from the West C. India to China at $9.5-11K/day.