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The dry bulk cargo market fell last week with large sizes weighing on the general index. On the contrary, the smaller sizes maintained their positive course, albeit marginally. More specifically, Capes decreased by 13.36%, Kamsarmaxes -3.1%, Supramaxes +4.3% and Handies +1.8%, compared to the previous week. Thus, the BDI fell by 178 credits (compared to the previous week) and closed at 2196 credits on Friday, March 22.
Let's see, in more detail, how the dry bulk cargo market by vessels size moved last week, starting with CAPEs. In Asia there were several discussions but this was not reflected in the list of closures as most charterers preferred to wait. Index levels on the Australia-China route (C5) closed on Friday at $12.17/tn.
In the North Atlantic, there were losses for both Asia and transatlantic trips, with transatlantic trips more significant, down more than 20% compared to the previous week. And in the south the picture was not better but the weekly losses were in single digits. Indexes on Friday for trips from Brazil to China reached $28.54/tn (for route C3), while rates from Continent to Asia closed at $56.63K/d (for route C9 ) and Transatlantic round trips at $25.64K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin and especially in the north there was a balance between supply and demand but the charterers were able to hold a waiting attitude reducing their ideas. In the south there have been variations in rates depending on the dates as vessels opening in early April see lower rates compared to mid-April. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $22-24K/day (Asia delivery), Continent to Asia at $28-30K/day (Continent delivery) and transatlantic round trips at $17.5 -19.5 K/day (delivery to Gibraltar).
On the other hand, in Asia the market started the week with several new cargoes from Australia and Indonesia. However, from Tuesday onwards the negative future forecasts changed the positive sentiment which was worsened by the drop in demand. Indonesia-Far East round trip rates moved to $16-18K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market declined as activity was limited. In addition, the charterers preferred to wait in order to push the rates higher. SMXs rates for travel between S. E.. Asia and the Far East went to 16.5-18K/day. Further north, in the Far East the market saw an increase in rates mainly due to coil cargoes which offered some bonus. Conversely, vessels that could not load such cargoes moved at lower levels. SMXs rates for NOPAC round trips moved to $13.5-15K/day, W. C. India round trips to $11.5-13K/day and Atlantic (BH) round trips to $13-14; 5K/day.
In the Middle East Gulf and the West C. India the market received positive effects from the rise of South America mainly for the largest vessels in the sector. In addition the gulf showed a lot of activity while W. C. India was calm. SMXs rates for Far East trips ranged betwe $17-18.5K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle East Gulf – West C. India at $13.5-15 K/day and trips to the Atlantic Basin at $ 6.5-8 K/day.
In the Atlantic Basin and especially in the US Gulf there were large fluctuations as there may have been a steady flow of cargo, but the large number of vessels available until the beginning of next month led to a drop in rates. SMXs rates for Transatlantic trips reached up to $13.5-15K/day and to Asia $23-24.5K/day. The ECSA region started the week with several new cargoes mainly for transatlantic trips. However, later in the week the biggest vessels in the sector faced competition from the Panamaxes. The rates of SMXs for trips to the S. E. Asia-China moved to $28.5-30K/day and for Transatlantic trips (Mediterranean/Continent) to $24.5-26K/day.
Continent has moved positively with many new loads that led to higher levels. Trips to Asia were of particular interest. At the end of the week rates stabilized after most loads were covered. SMXs rates for round-local trips moved to $ 15.5-17K /day, for trips with scrap loads to the Mediterranean at $ 15.5-17k /day and to Asia at $ 25.5-27k / day. The Mediterranean lost further ground as the absence of grain was obvious and most of March's loads were covered. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $26.5-28K/day (Canakkale delivery), to the other side of the Atlantic at $11.5-13K/day and within the Mediterranean at $ 13-14.5 K/day (outside war zones).
In the Handies market, in Continents the market was quiet with limited activity at the beginning of the week. However the sequel was better as more loads were presented. It is worth noting that most shipowners were looking to book some cargo to Latin America. Rates for the largest vessels in the class, for round trips reached up to $15.5-17K/day, to the Mediterranean with Scrap cargoes at $15-16.5K/day and for Transatlantic trips at $13.5-15K /day.
The Mediterranean maintained its upward trend due to congestion in the Bosphorus and cargoes of grain and cement to the other side of the Atlantic Basin. Larger vessels rates (above 36K tonnes DWT) for intra-Med trips moved to $12.5-14K/day (delivery at Canakkale), to Continent at $11-12.5K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $10.5-12K/day (delivery to Canakkale) and to Asia at $19-20.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market showed upward trends as the increase in cargoes led to an improvement in the supply-demand relationship. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $13-14.5K/day and to Asia at $16.5-18K/day.
The East Coast of South America (ECSA) region continued to move upward with demand strengthening relative to capacity supply. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $20-21.5K/day and to Asia at $23-24.5K/day.
In Asia the market moved at low speeds due to the lack of cargoes from the north, Indonesia and Australia. Trips to the Atlantic showed interest where vessels with good characteristics fetched a premium. The Middle East Gulf and W. C. India moved similarly slowly without much activity due to the Ramadan holiday. Far East and NOPAC round trip charters on larger vessels closed at $13-14.5K/day, from S. E. Asia to China at $14-15.5K/day and from the West C.India to China at $11-12.5K/day.

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