www.TheSeaNation.gr

The dry bulk cargo market continued to record across all sizes, with Panamaxes and Supramaxes showing the biggest losses, followed by the rest of the sizes. In detail, Capes fell by 4.2%, Kamsarmaxes -9.79%, Supramaxes -7.01% and Handies -5.5%, compared to the previous week. Thus, the BDI fell by 101 credits (compared to the previous week) and closed at 1462 credits on Friday, November 3.
Let’s see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. In Asia the market progressed without particular changes and with limited action. However, at the end of the week there were improvements in mobility limiting the weekly losses. Index levels on the Australia-China route (C5) closed Friday at $8.57/tn.
In the Atlantic Basin the north was bolstered with quite a few cargoes both transatlantic and to Asia. In the South the market started the week lower, but in recent days it has seen more cargoes from both Brazil and Africa, leaving expectations for the week ahead. indexes on Friday for trips from Brazil to China reached up to $20.83/tn (for route C3), while rates from Con5 to Asia closed at $37.5K/d (for route C9 ) and Transatlantic round trips at $26.76K/day (for route C8).
Regarding Kamsarmaxes, in the North Atlantic the week ended with an upward trend, thanks to increased demand for transporting mineral cargoes. In contrast, Brazil came under pressure as the number of vessels moving to the region increased while the flow of cargo was not commensurate. For example, rates for the trips from the E. Coast S. Americas (ECSA) to the Far East reached up to $13-15K/day (Asia delivery), Continent to Asia at $22-24K/day (Continent delivery) and Transatlantic round trips at $13.5 -15.5 K/day (delivery to Gibraltar).
On the other hand, in Asia the week started with a small number of shipments and continued at the same pace. North Pacific and Australia did not support the market and only a few cargoes from Indonesia were alternatives for shipowners. Indonesia-Far East round trip rates moved to $11-13K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed improvements with a satisfactory cargo volume, while the list of available vessels in the region was reduced. SMXs rates for travel between S.E. Asia and the Far East fell to 9.5-11K/day. Further north, in the Far East the market started the week lower and continued at the same pace as shipowners’ competition for some cargo became increasingly intense. SMXs rates for NOPAC round trips moved to $6.5-8K/day, W. C. India round trips to $6.5-8K/day and Atlantic Basin (BH) round trips to $6.5- 8K/day.
In the Middle East Gulf and West C. India, it declined due to oversupplied capacity and limited cargo flow. SMXs rates for Far East trips ranged from $10.5-12K/day (from Middle East’s Gulf (MEG) – West C. Indies (WCI)), for short-haul trips between Arabian Gulf – West C. India at $8.5-10K /day and trips to the Atlantic Basin at $ 6-7.5 K/day.
In the Atlantic Basin and especially the American Gulf continued its rise with the supply remaining at low levels and a steady flow of cargoes. SMXs rates for Transatlantic trips rose to $19-20.5K/day and to Asia $28.5-30K/day. The ECSA region started the week with more cargo from the north. But the low demand in the south has led many vessels to move further north resulting in increased competition. The rates of SMXs for trips to S.E. Asia-China moved to $18-19.5K/day and for Transatlantic trips (Mediterranean/Continent) to $14-15.5K/day.
Continent lost ground for another week with activity subdued and charterers pushing for even lower numbers. SMX rates for round-trip local trips moved to $14-15.5K/day, for trips with SCRAP cargoes to the Mediterranean at $16-17.5K/day and to Asia at $21.5-23K/ day. The Mediterranean moved at two speeds. On the one hand transatlantic travel was minimal while on the other hand travel to Asia was not enough to support the market. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $19.5-21K/day (Canakkale delivery), to the other side of the Atlantic Basin at $10.5-12K/day and into the Mediterranean at $ 11-12.5 K/day (outside war zones).
In the Handies market, in Continent the market continued the downward trend of the previous week, due to various holidays and bad weather conditions which caused various delays in the flow of cargoes. Fares for the largest vessels in the class, for round trips reached up to $11.5-13K/day, to the Mediterranean with Scrap cargoes at $13-14.5K/day and for Transatlantic trips at $10.5-12K /day.
The Mediterranean fell further with demand tightening even further. Ukraine still does not deliver cargo, while the rates from Russia also moved at low levels. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $8.5-10K/day (delivery at Canakkale), to Continent at $8.5-10K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $7.5-9K/day (delivery to Canakkale) and to Asia at $13-14.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market continued to be positive with quite a lot of cargo from both the East Coast and the Gulf. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $20-21.5K/day and to Asia at $21-22.5K/day.
The East Coast of South America (ECSA) region continued to decline. The south was under pressure due to a lack of cargo while in the north demand was also declining. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $13.5-15K/day and to Asia at $16.5-18K/day.
In Asia the cargo shortage was evident. Shipowners’ options were limited as the North Pacific was calm and Australia was not paying a bonus. In the Middle East Gulf and West C India the market remained under pressure as ready-to-ship cargoes were low. Far East and NOPAC round trip charterers on larger vessels closed at $7-8.5K/day, from S.E. Asia to China at $8-9.5K/day and from the West C. India to China at $7.5-9K/day.

Disclaimer
This report and the information contained herein it is for general information only and does not constitute an investment advice