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The dry bulk cargo market continued to be positive thanks to the rise of Capes, while Supramaxes and Handies also saw double-digit percentage weekly growth. On the contrary, Panamaxes recorded small losses. More specifically, Capes increased by 28.45%, Kamsarmaxes -3.1%, Supramaxes +11% and Handies +9.82%, compared to the previous week. Thus, the BDI rose by 256 credits (compared to the previous week) and closed at 1866 credits on Friday, February 23.
Let’s see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. Asia started the week with bad weather conditions which caused many operational problems in the ports of China and Western Australia thus creating delays for vessels. However, in the middle of the week, activity improved, boosting rates. Index levels on the Australia-China route (C5) closed on Friday at $11.2/tn.
In the Atlantic Basin the second half of the week was particularly active especially in southern Brazil and West Africa with rates gaining over two dollars per tonne. Indexes on Friday for trips from Brazil to China reached up to $26.18/tn (for route C3), while rates from Continent to Asia closed at $49.72K/d (for route C9 ) and Transatlantic round trips at $28.57K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin the market came under heavy pressure from vessels moving from Asia, since the demand was not enough to cover the existing ones. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $13.5-15.5K/day (Asia delivery), Continent to Asia at $22-24K/day (Continent delivery) and transatlantic round trips in $11.5-13.5K/day (Gibraltar delivery).
On the other hand, Asia got off to a quiet start to the week, but there was an increase in activity in the middle. So, several closes were made at higher numbers. At the end of the week, we saw some corrections as several trades did not materialize. Indonesia-Far East round trip rates moved to $14-16K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed improvements as all parties involved have returned from vacations and holidays. SMXs rates for travel between S.E. Asia and the Far East went to 10.5-12K/day. Further north, in the Far East the market showed upward trends with clearly more mobility which resulted in a reduction in the number of vessels available. SMXs rates for NOPAC round trips were $7.5-9K/day, for W. C. India round trips at $5-6.5K/day and Atlantic (BH) round trips at $5.5- 7K/day.
In the Middle East Gulf and West C. India the market progressed without particular changes but there was optimism that there will be further improvements. SMXs rates for Far East trips ranged between 8.5-20K/day (from Middle’s East Gulf (AG) – West C. Indies (WCI)), for short-haul trips between Middle East Gulf – West C. India at $15.5-17 K/day and trips to the Atlantic Basin at $ 6-7.5 K/day.
In the Atlantic Basin and especially the US Gulf was squeezed due to increasing capacity while demand was low. It is worth noting that the larger sizes received a bonus for trips to Asia over the smaller vessels in the sector. SMXs rates for Transatlantic trips reached up to $18.5-20K/day and to Asia $29-30.5K/day. The ECSA area was quiet without much activity. Rates remained flat thanks to limited supplied capacity. The rates of SMXs for trips to S.E. Asia-China moved to $27-28.5K/day and for Transatlantic trips (Mediterranean/Continent) to $18-19.5K/day.
Continent closed the week positively as the number of vessels gradually decreased while demand remained stable. SMX rates for round-trip local trips moved to $17-18.5K/day, for SCRAP trips to the Mediterranean at $17.5-19K/day and to Asia at $24.5-26K/ day. The Mediterranean declined for another week as cargo flows remained low as vessels increased in availability. Indicatively, 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 $11-12.5K/day and within the Mediterranean at $ 12-13.5 K/day (outside war zones).
In the Handies market, in Continent the market progressed positively as cargo flow was steady, especially from the Baltic. Rates for the largest vessels in the class, for round trips reached up to $12.5-14K/day, to the Mediterranean with Scrap cargoes at $12.5-14K/day and for Transatlantic trips at $11.5-13K /day.
The Mediterranean was helped by the mobility of charterers who rushed to cover their cargoes. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $11.5-13K/day (delivery at Canakkale), to Continent at $11-12.5K/day (delivery to Canakkale), to the other side of the Atlantic Basin at $10.5-12K/day (delivery to Canakkale) and to Asia at $18.5-20K/day.
On the other side of the Atlantic Basin, in the US Gulf the market showed a decline mainly for travel to the other side of the Atlantic but there is optimism that activity will improve going into the second quarter of the year. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between 0-11.5K/day and to Asia at $14-15.5K/day.
The East Coast of South America (ECSA) region advanced unchanged. Demand and supply were essentially unchanged and rates remained at the same levels. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $15-16.5K/day and to Asia at $19-20.5K/day.
In Asia the market showed significant improvements with local indexes showing weekly improvements of up to 20%. Significant help came to the market from North Pacific cargoes and Australia. Further west the picture was similar with plenty of activity and rising rates. Far East and NOPAC round trip charterers on larger vessels were closing in at $10-11.5K/day, from S.E. Asia to China at $11-12.5K/day and from the West India to China at $11.5-13K/day.

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