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The dry bulk cargo market declined due to the larger ones with only Handies making weekly gains. More specifically, Capes decreased by 3.43%, Kamsarmaxes -9.7%, Supramaxes -6.25% and Handies +4.1%, compared to the previous week. Thus, the BDI fell by 135 credits (compared to the previous week) and closed at 2348 credits on Friday, December 15.
Let's see, in more detail, how the dry bulk cargo market by vessels size moved last week, starting with CAPEs. In Asia, the week started strongly. On the one hand the main charterers from Western Australia to China were active and on the other the operational problems caused in the ports of northern China kept the supply of capacity limited. Index levels on the Australia-China route (C5) closed on Friday at $14.89/tn.
In the Atlantic Basin the market moved at low speeds as there was not much action. So the few closes that took place last week were at a lower level. Indexes on Friday for voyages from Brazil to China reached $24.5/tn (for route C3), while rates from Continent to Asia closed at $49.75K/d (for route C9 ) and Transatlantic round trips at $41.84K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin the week started with small corrections as the supply of vessels strengthened and a drop in demand was observed. In the North Atlantic the week continued at the same pace as cargo flow did not improve. On the contrary, in the south, demand was somewhat better, restraining the further decline. For example, the rates for the trips from the E. Coast S. America (ECSA) to the Far East reached up to $13.5-15.5K/day (W. C.India delivery), Continent to Asia at $26-28K/day (Continent delivery) and transatlantic round trips to $21-23 K/day (delivery to Gibraltar).
On the other hand, in Asia increased demand from Indonesia and the North Pacific kept the market warm, but without much excitement. Indonesia-Far East round trip rates moved to $13-15K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed improved demand, but moving vessels from the north halted any rate increases. SMXs rates for travel between N.A. Asia and the Far East went to 11.5-13K/day. Further north, in the Far East the market continued qualitatively as there was no support with new cargoes from China and the North Pacific. SMXs rates for NOPAC round trips ranged from $8-9.5K/day, for W. C. India round trips at $7.5-9K/day and Atlantic (BH) round trips at $6-7; 5K/day.
In the Middle East Gulf and West C. India the market remained flat as there was a balance between supply of vessels and cargoes. SMXs rates for Far East trips ranged from $15-16.5K/day (from Middle’s East Gulf (MEG) – West C Indies (WCI)), for short-haul trips between Middle East Gulf – West C. India at $13-14.5 K/day and trips to the Atlantic at $ 6-7.5 K/day.
In the AtlanticBasin and especially the American Gulf proceeded with several ups and downs in terms of rates, as grain cargoes were absent but there were more ores. SMXs rates for Transatlantic trips rose to $42.5-44K/day and to Asia $38.5-40K/day. The ECSA region continued without particular changes, compared to the previous week. On the one hand the readily available vessels could close at the same levels or even slightly higher, but vessels with late December early January dates were under pressure. The rates of SMXs for trips to N.A. Asia-China moved to $26.5-28K/day and for Transatlantic trips (Mediterranean/Continent) to $27.5-29K/day.
Continent was characterized by more competition from shipowners mainly for the first half of January cargoes. Thus the rates fell. SMX rates for round-trip local trips moved to $26-27.5K/day, for trips with SCRAP cargoes to the Mediterranean at $28.5-30K/day and to Asia at $33.5-35K/ day. The Mediterranean moved at two speeds. On the one hand, the western Mediterranean, which had increased demand, and on the other, the eastern, which was calm. Indicatively, it is reported that an SMX for a trips from the Mediterranean to Asia closed at $26.5-28K/day (Canakkale delivery), to the other side of the Atlantic at $16.5-18K/day and within the Mediterranean at $ 17.5-19 K/day (outside war zones).
In the Handies market, in Continent the market progressed with a rise, since the cargo flow was stable and the number of vessels was limited. In the next period, more calm is expected due to holidays. Rates for the largest vessels in the class, for round trips reached $ 22-23.5K/day, to the Mediterranean with Scrap cargoes at $ 21.5-23K/day and for Transatlantic trips at $ 18.5-20K / day.
The Mediterranean showed a similar picture with the larger vessels . In particular, the western Mediterranean was helped by Latin American demand, while the Black Sea moved in calm waters. Larger vessels rates (above 36K tonnes DWT) for intra-Med trips moved to $16.5-18K/day (delivery at Canakkale), to Continent at $14-15.5K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $15.5-17K/day (delivery to Canakkale) and to Asia at $20-21.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market was boosted at the beginning of the week by the lack of readily available vessels. Thus the rates moved positively, however entering the holiday season we expect a drop in activity. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $27.5-29K/day and to Asia at $29.5-30K/day.
The East Coast of South America (ECSA) region showed slightly downward trends due to an increase in offered capacity in the region. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $27.5-29K/day and to Asia at $31.5-33K/day.
In Asia the north was more active than the south, with more loads than the north pacific. By contrast, calm prevailed in Southeast Asia and Australia. Further west, there was an influx of cargo from the Middle East Gulf, helping rates to rise. Far East and NOPAC round trip charterers on larger vessels closed at $8.5-10K/day, from S. E. Asia to China at $9-10.5K/day and from the West.C. India to China at $8-9.5K/day.

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