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Last updateΔευ, 01 Ιουλ 2024 7am

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Rise for the dry bulk cargo market

Bulk carrier 1

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios-Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market saw further growth with all sizes showing improvements, while Capes, Panamaxes and Handies posted double-digit weekly gains. More specifically, Capes are up 22.51%, Kamsarmaxes +10.14%, Supramaxes +6.15% and Handies +11.83%, compared to the previous week. Thus, the BDI rose by 177 credits (compared to the previous week) and closed at 2102 credits on Friday, November 24.
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 first half of the week was quiet, without much activity. However, in the last two days, the largest miners moved in the market, interrupting the downward trend of the indexes, and finally closed the week with gains. Index levels on the Australia-China route (C5) closed on Friday at $11.02/tn.
In the Atlantic Basin the week started without much activity but quickly the picture improved, especially in Brazil. In the north the market was calmer but the positive image of the south boosted the rates. Indexes on Friday regarding trips from Brazil to China reached up to $26.43/tn (for route C3), while rates from Continent to Asia closed at $47.13K/d (for route C9) and Transatlantic round trips at $41.19K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic the north starred again this week with increased demand for cargo transports. The south did not move at the same speeds, but followed the upward trends of the Atlantic Basin. For example, rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $16.5-18.5K/d (PMO delivery), Continent to Asia at $29-31K/d (Continent delivery) and transatlantic round trips at $25.5-27.5K/day (Gibraltar delivery).
On the other hand, in Asia the market advanced with fresh gains. Grains from the North Pacific were the protagonists though and coal cargoes had a steady flow from Australia and Indonesia. Indonesia-Far East round trip rates ranged from $11.5-14.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market progressed without particular changes as cargo volume remained stable and vessel supply was unchanged from the previous week. SMXs rates for travel between S.E. Asia and the Far East went to 13.5-15K/day. Further north, in the Far East the market moved forward with more cargoes further boosting rates. SMXs round trip NOPAC rates ranged $9-10.5K/day, India round trips $8-9.5K/day and Atlantic Basin (BH) round trips $6-7; 5K/day.
In the Middle East Gulf and West C. India the market lost ground as the few closes that surfaced were at lower levels than last week. SMXs rates for Far East trips ranged from $10.5-12K/day (from Middle East’s Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle East Gulf – West C. India at $8.5-10K /day and trips to the Atlantic Basin at $ 4.5-6 K/day.
In the Atlantic Basin and especially the American Gulf continued to move upwards. The flow of cargo is continuous and the congestion in Panama keeps the capacity offered at satisfactory levels. SMX rates for Transatlantic trips rose to $32-33.5K/day and to Asia $32.5-34K/day. The ECSA area was active last week with several new cargoes making their appearance on the market, while the number of vessels moving into the area has also been limited. The rates of SMXs for trips to S.E. Asia-China moved to $25-26.5K/day and for Transatlantic trips (Mediterranean/Continent) to $21.5-23K/day.
Continent saw a fresh rise with plenty of activity driving rates to higher levels. SMX rates for round-trip local trips moved to $16-17.5K/day, for trips with SCRAP cargoes to the Mediterranean at $18.5-20K/day and to Asia at $23.5-25K/ day. The Mediterranean maintained its momentum despite the low activity, as it was influenced by the positive climate in Continent and the American Gulf. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $22-23.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $12.5-14K/day and within the Mediterranean at $ 14-15.5 K/day (outside war zones).
In the Handies market, in Continent the market showed a small increase in the volume of cargo mainly from the Baltic, while at the same time the available vessels in the region were also limited. Rates for the largest vessels in the class, for round trips reached up to $17.5-19K/day, to the Mediterranean with Scrap cargoes at $16.5-18K/day and for Transatlantic trips at $12.5-14K/day day.
The Mediterranean moved positively, with charterers being particularly active and looking for vessels for their cargoes. Larger vessel rates (above 36K tonnes DWT) for intra-Med trips moved to $11.5-13K/day (delivery at Canakkale), to Continent at $9-10.5K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $11-12.5K/day (delivery to Canakkale) and to Asia at $15-16.5K/day.
On the other side of the Atlantic, the US Gulf market continued its upward trend with fresh weekly gains despite a pause in activity due to the Thanksgiving holiday. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $20.5-22K/day and to Asia at $23.5-25K/day.
The East Coast of South America (ECSA) region saw a big rise thanks to the small number of vessels available which forced charterers to raise their ideas in order to meet their needs. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $19.5-21K/day and to Asia at $18.5-20K/day.
In Asia, the south was the star with several cargoes from Indonesia and Australia. On the contrary, the north was calmer and only the North Pacific strengthened the market mainly for the largest vessels in the sector. On the other hand, W. C. India and the Middle East Gulf were calm and few cargoes were available in the market. Far East and NOPAC round trip charterers on larger vessels closed at $7.5-9K/day, from S. E. Asia to China at $8.5-10K/day and from the West C. India to China at $6.5-8K/day.

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

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