Παρ02142025

Last updateΠαρ, 14 Φεβ 2025 5pm

News in English

The dry bulk cargo market continues to decline

Bulk carrier 1

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios-Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market lost ground last week with Capes recording a double-digit weekly decline and single-digit losses for smaller sizes.

Specifically, Capes fell by 17.71%, Kamsarmaxes -6.76%, Ultramaxes (63) -1.55% and Handies -3.98%, compared to the previous week. Thus, the BDI fell by 116 credits, compared to the previous week and closed at 1051 credits on Friday, December 13.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessel size, starting with CAPEs. In Asia, the initial increase in cargo volume was not enough to improve the negative market picture as the number of vessels was constantly increasing. The index levels on the Australia-China route (C5) closed on Friday at $6.99/tn.
In the Atlantic Basin, the market showed a recession both in the north and in the south. In the north, trips to Asia closed at lower levels compared to the previous week. On the other hand, in the south, there are positive forecasts for demand for the next month, but the existing oversupply determined the market. The indexes on Friday reached up to $16.23/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $27.29 K/day (for the C9 route) and Transatlantic round trips at $12.61K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin and especially in the north, interest focused on transatlantic trips since trips to Asia did not offer attractive alternatives. In the south, there was more stability as for some time windows the supply of capacity was limited, achieving some (albeit few) higher closings. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 9.5-11.5K/day (delivery Asia), from Continent to Asia at $ 13.5-15.5K/day (delivery in Continent) and the circular Transatlantic trips at $ 8.5-10.5K/day (delivery in Gibraltar).
On the other hand, in Asia, rates continued to decline. There may have been sporadic increases in cargoes mainly from Indonesia, but the large number of vessels did not allow for improvements in the numbers. The rates for round trips in Indonesia-Far East moved to $ 10-12K /day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market declined as the supply of capacity was strengthened by vessels moving from the east coast of W. C. India. Australia was quiet but there were more cargoes from Indonesia and Vietnam. The rates for UMXs for trips between SE Asia and Far East went to 11-12.5K /day. Further north, in the Far East the market remained under pressure as there were many vessels readily available and the number of cargoes was limited. UMXs rates for round trips in the North Pacific (NOPAC) were $9-10.5K/day, for trips to W. C. India at $10.5-12K/day and return trips to the Atlantic Basin (BH) at $8.5-10K/day.
In the Middle East Gulf and West C. India the market lost ground as reduced demand increased competition among shipowners, driving rates to lower levels. Far East UMX rates were $10.5-12K/day (from Middle East Gulf (MEG) – West C. India (WCI)), short Gulf–West India trades were $9.5-11K/day and Atlantic trades were $5.5-7K/day.
The Atlantic Basin and especially the American Gulf remained calm and interest was focused on some petcoke cargoes to the other side of the Atlantic Basin and within the Gulf. Transatlantic UMX rates were $20.5-22K/day and to Asia were $20.5-22K/day. The ECSA region started the week strongly as demand was solid and supply of vessels was falling. SMXs rates for trips to SE Asia-China were at $19.5-21K/day and for Transatlantic trips (Mediterranean/Continent) at $17.5-19K/day.
Continent showed weak activity, as partly bad weather conditions, partly the fact that charterers have entered a festive mood kept the pace low. UMXs rates for round-local trips were at $12-13.5K/day, for trips with SCRAP cargoes to the Mediterranean at $12.5-14K/day and to Asia at $14.5-16K/day. The Mediterranean showed signs of recovery after a period of recession. Thus, there was an increased volume of cargo in the Eastern Mediterranean and the Black Sea, while in the Western Sea, shippers were also trying to meet deadlines. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $ 13-14.5K/day (delivery Canakkale), to the other side of the Atlantic Basin at $ 6.5-8K/day and within the Mediterranean at $ 8.5-10K/day (excluding war zones).
In the Handies market, the market in Continent was quiet without much activity. Although the number of vessels in the region was limited, there was competition from vessels in the Western Mediterranean. Rates for the largest vessels in the category, for round trips, reached up to $9-10.5K/day, to the Mediterranean with scrap cargoes at $8.5-10K/day and for Transatlantic trips at $7-8.5K/day.
The Mediterranean lost ground as most cargoes were covered and the number of vessels increased. The rates of the largest vessels (over 36K DWT) for trips within the Mediterranean ranged between $6.5-8K/day (delivery in Canakkale), to Continent from $7-8.5K/day (delivery in Canakkale), to the other side of the Atlantic Basin from $6.5-8K/day (delivery in Canakkale) and to Asia from $10.5-12K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market declined further as the number of vessels far exceeded that of cargoes. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged between $11.5-13K/day and to Asia from $15.5-17K/day.
The East Coast of South America (ECSA) region was pressured by two factors. On the one hand, there were many delays in vessels that caused an imbalance in the supply-demand balance and on the other hand, the expected increase in vessels strengthened the position of charterers. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent-Mediterranean) moved to $ 15-16.5K/day and to Asia to $ 16.5-18K/day.
In Asia, the market declined both in the south and in the north, since the oversupply of vessels quickly absorbed any cargoes that came from Australia or the North Pacific without leaving room for a rise in rates. Further west, in the Gulf of the Middle East and the West C. India, the market continued to decline as the general climate was also negative. The rates of the largest vessels in the category for round trips to the Far East and NOPAC closed at $ 8.5-10K / day, from SE Asia to China at $ 9-10.5K / day and from West C. India to China at $ 8.5-10K / day.

As the holiday season approaches, we would like to extend my warmest wishes to you and your loved ones.

May your Christmas be filled with joy, laughter, and cherished moments, and may the New Year bring you health, happiness, and prosperity.

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

Περισσότερα νέα

News In English

ΕΠΙΚΟΙΝΩΝΙΑ

Εγγραφή NewsLetter