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Last updateΔευ, 01 Ιουλ 2024 7am

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The Dry Bulk Cargo Market continues to rise

bulk ships 000

Iakovos (Jack) Archontakis
Commercial Manager TMC MARITIME CO.

Dr. Fotios-Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market progressed with an increase as profits were presented by all sizes, with the largest recorded in the Capes. More specifically, Capes rose by 24.9%, Kamsarmaxes +0.76%, Supramaxes +10.11% and Handies +5.7, compared to the previous week. Thus, the BDI increased by 121 credits (compared to the previous week) and closed at 1186 credits on Friday, September 8.
Let’s see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. Asia saw plenty of movement at the start of the week with the three biggest charterers active. Later in the week, the rates dropped, but the rates always maintained their upward trends. Indexes levels on the Australia-China route (C5) closed on Friday at $8.3/tn.
In the Atlantic Basin the week started quietly, with shipowners looking unwilling to close at charterers’ levels. Later in the week the improvement in demand in the North affected the overall picture of the Atlantic Basin leading to a general rise in rates. Indexes on Friday for trips from Brazil to China reached up to $19.48/tn (for route C3), while rates from Continent to Asia closed at $29.375K/d (for route C9) and Transatlantic round trips at $9.2K/day (for C8 route).
Regarding the Kamsarmaxes, in the Atlantic Basin and especially in the north the week started quite nervously since the cargo transatlantic trips were not enough to cover the increasing number of vessels. In the South the picture was somewhat better as the market remained at the same levels. For example, the rates for the journeys from the E. Coast S. America (ECSA) to the Far East reached up to $13-15K/day (Asia delivery), Continent to Asia at $21.5-23.5K/day (Continent delivery) and transatlantic round trips at $12.5-14.5 K/day (Gibraltar delivery).
On the other hand, in Asia the week started as it ended the previous one, i.e. with upward trends. The rest of the week continued at the same rate with many cargoes from the North Pacific, Indonesia and Australia. Indonesia-Far East round trip rates moved to $11-13K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market had a slow start to the week, but then activity picked up. SMXs rates for travel between S.E. Asia and the Far East rose to 11.5-13K/day. Further north, in the Far East the market was kept at the same levels as the supplied capacity did not show any particular changes and new loads were also limited. SMXs round trip NOPAC rates ranged between 7-8.5K/day, W. C. India round trips $7-8.5K/day and Atlantic Basin (BH) round trips $7-8; 5K/day.
In the Middle East Gulf and West C. India the market maintained its momentum thanks to the volume of cargoes to Bangladesh. There was also strong interest from charterers for period charters. SMXs rates for Far East trips ranged between $13-14.5K/day (from Middle East’s Gulf (MEG) – West C. Indies (WCI)), short-haul between Middle East Gulf – West C India at $11.5-13K /day and trips to the Atlantic Basin at $8.5-10K/day.
In the Atlantic Basin and especially the American Gulf continued to show improvements, however a slowdown in the rise of rates is observed. SMXs rates for Transatlantic trips rose to $18.5-20K/day and to Asia $24-25.5K/day. The ECSA area continued at the same pace with a steady flow of cargo, while the number of vessels also remained limited. Additional market support came from West and South Africa. The rates of SMXs for trips to S.E. Asia-China moved to $19.5-21K/day and for Transatlantic trips (Mediterranean/Continent) to $21.5-23K/day.
Continent continued its upward trend as the supply and demand ratio tilts in favor of shipowners. SMX rates for round-trip local trips moved to $13.5-15K/day, for trips with SCRAP cargoes to the Mediterranean at $14.5-16K/day and to Asia at $19.5-21K/ day. The Mediterranean gained ground again this week, with trips to Asia showing the most interest and the rest of the routes following. For example, it is reported that an SMX for a Mediterranean to Asia trip closed at $22.5-24K/day (Canakkale delivery), to the other side of the Atlantic Basin at $13.5-15K/day and within the Mediterranean at $ 15.5-17 K/day (outside war zones).
In the Handies market, in Continent the market made further gains compared to the previous week as shipowners struggled to find employment for their vessel. Rates for the largest vessels in the class, for round trips reached up to $13-14.5K/day, to the Mediterranean with Scrap cargoes at $12-13.5K/day and for Transatlantic trips at $10.5-12K /day.
The Mediterranean was boosted by cargoes from the Black Sea, while the Western Mediterranean was also active. Larger 3.5 vessel (above 36K DWT) rates for intra-Mediterranean trips moved to $13.5-15K/day (delivery at Canakkale), to Continent at $13.5-15K/day (delivery to Canakkale), to the other side of the Atlantic Basin at $12.5-14K/day (delivery to Canakkale) and to Asia at $16.5-18K/day.
On the other side of the Atlantic Basin, in the US Gulf the market showed improvement this week as well, with an increase in rates in all directions. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged between $11.5-13K/day and to Asia at $14.5-16K/day.
In the East Coast of South America (ECSA) region the market moved upwards, with several new cargoes making an appearance. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15-16.5K/day and to Asia at $17.5-19K/day.
In Asia both north and south saw a fair amount of activity, but this was not enough to drive rates to large increases compared to the previous week. Nevertheless, weekly changes in rates were positive. In the Middle East Gulf and W. C. India, the market showed movement with several discussions taking place. However, the increase in available vessels is expected to exert pressure in the period ahead. Far East and NOPAC round trip charterers on larger vessels closed at $7.5-9K/day, from S.E. Asia to China at $9.5-11K/day and from the West C. India to China at $8-9.5K/day.

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