News in English

Big rise for Capes

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios –Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market showed a new increase with the largest sizes continuing with a double-digit weekly increase while the smallest sizes remained at the same levels compared to the previous week.

In detail, Capes rose by 30.95%, Kamsarmaxes by 12.46%, Ultramaxes (63) +0.33% and Handies +0.63%, compared to the previous week. Thus, the BDI rose by 335 credits, compared to the previous week and closed at 1968 credits on Friday, June 13.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessels size, starting with the CAPEs. In Asia, the three largest miners were active increasing activity and demand. Thus, the main route from Western Australia to China gained over $ 1 / ton during the past week. The index levels on the Australia-China route (C5) closed on Friday at $11.02/tn.
In the Atlantic Basin, there was an increase in both the north and south. The main parameters of this upward trend were the reduction in the supply of vesss in the north and the increase in demand on the route from Brazil to China. The indexes on Friday reached up to $26.63/tn for the trips from Brazil to China (for the C3 route), while the rates from Continent to Asia closed at $54.41K/day (for the C9 route) and the Transatlantic round trips at $36.86K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin the increase in grain cargo volumes led north and south to higher levels for trips towards the end of June. It is worth noting that especially in the north there were differences in rates between vessels in Continent and those in the Western Mediterranean. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached $ 12.5-14.5 K/day (delivery Asia), from Continent to Asia at $ 18.5-20.5 K/day (delivery in Continent ) and round Transatlantic trips at $ 11-13 K/day (delivery in Gibraltar).
On the other hand, in Asia the increased demand from Australia and the good image of Latin America (ECSA), which attracted many vessels, led the market to higher numbers. There was also increased interest in season charters. Roundtrip rates for Indonesia-Far East trades were at $11-13K/day (Far East delivery).
For Supramaxes-Ultramaxes, Southeast Asia proceeded without any particular differentiation with demand drivers being coal carriers from Indonesia and Australia. However, the oversupply of vessels kept rates low. UMXs rates for trades between SE Asia and the Far East went to $11-12.5K/day. Further north, in the Far East the market started the week with limited activity on the most important routes, such as the North Pacific and to West Africa, and continued at the same declining pace. UMXs rates for round trips in the North Pacific (NOPAC) were $9.5-11K/day, for trips to W. C. India at $11.5-13K/day and return trips to the Atlantic Basin (BH) at $11-12.5K/day.
In the Middle East Gulf and West C. India the market moved at low speeds. Although capacity supply was limited, it was still greater than demand, putting pressure on rates. There is strong concern about the situation in the Middle East and how it will affect the market. Rates for UMXs for trips to the Far East ranged between $10.5-12K/day (from Middle East’s Gulf (MEG) – West C. Indies (WCI)), for short trips between Middle East’s Gulf – West C. India from $10.5-12K/day and trips to the Atlantic Basin from $8.5-10K/day.
The Atlantic Basin and especially the American Gulf advanced mainly due to Transatlantic trips. The poor image of the Mediterranean forced charterers to pay a premium in order to find a vessel for their cargo. Rates for UMXs for Transatlantic trips reached up to $22-23.5K/day and to Asia from $18.5-20K/day. The ECSA region showed interest in trips to Asia. The rise of the larger Panamaxes also positively affected this sector, improving cargo flow for late June and early next month. UMXs rates for trips to SE Asia-China were at $18.5-20K/day and for Transatlantic trips (Mediterranean/Continent) at $18.5-20K/day.
Continent experienced a quiet week due to the absence of grain. So shipowners had to choose between scrap cargoes or moving to the other side of the Atlantic Basin. UMXs rates for round-local trips moved at $ 9.5-11K/day, for SCRAP trips to the Mediterranean at $ 12.5-14K /day and to Asia at $ 13-14.5K /day. The Mediterranean returned to active activity with several new cargoes and an increase in rates on almost all routes. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $ 11.5-13K/day (delivery Canakkale), to the other side of the Atlantic Basin at $ 7-8.5K/day and within the Mediterranean at $ 10-11.5K/day (excluding war zones).
In the Handies market, in Continent the market was inactive with few new cargoes, while the supply of vessels increased, creating additional pressure on rates. Several shipowners began to consider moving to the other side of the Atlantic Basin. Rates for the largest vessels in the category, for round trips, reached up to $ 7-8.5K/day, to the Mediterranean with scrap cargoes at $ 9-10.5K/day and for Transatlantic trips at $ 6.5-8K/day.
The Mediterranean showed steady demand, however, the absence of grain, steel and mineral cargoes was evident. The rates of larger vessels (over 36K tons DWT) for trips within the Mediterranean moved at $ 7-8.5K/day (delivery in Canakkale), to Continent at $ 6.5-8K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $ 6-7.5K/day (delivery in Canakkale) and to Asia at $ 9-10.5K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market continued its upward trend that it had since the previous week. Activity increased while the supply of vessels decreased. Thus, shipowners began to increase their ideas. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged at $ 15.5-17K/day and to Asia at $ 17.5-19K/day.
The East Coast of South America (ECSA) region showed increased demand for the second half of the month, while at the same time the supply of capacity was maintained at the same levels, thus giving the advantage to shipowners. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent-Mediterranean) ranged at $ 15.5-17K/day and to Asia at $ 14-15.5K/day.
In Asia, the week was downward with limited demand both in the north and in the south. Further west, in the Middle East Gulf and W. C. India the market declined despite the fact that there was some movement at the end of the week. Thus, losses of up to 2K/day were recorded on some routes. 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 $ 11-12.5K /day and from West C. ZIndia to China at $ 7.5-9K /day.

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