News in English

Rally for Kamsarmaxes, followed by large sizes

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios –Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market advanced with weekly gains recorded across all sizes. Kamsarmaxes led the way with a gain of over 20%, followed by Capes and Ultramaxes with double-digit gains compared to the previous week, compared to the previous week. Specifically, Capes rose by 13.44%, Kamsarmaxes +22.36%, Ultramaxes (63) +12.75% and Handies +1.89%, compared to the previous week. Thus, the BDI rose by 227 credits, compared to the previous week and closed at 1663 credits on Friday, July 11.
Let's take a closer look at how the dry bulk cargo market performed last week by vessels size, starting with the CAPEs. In Asia there was activity during the week with the three main miners being active with requests. In the middle of the week there was a decline but at the end there was a dynamic return for shipowners. The index levels on the Australia-China route (C5) closed on Friday at 8.22 $/tn.
In the Atlantic Basin, the rates were sluggish in the first half of the week for trips to Asia as well as for transatlantic trips. However, at the end of the week there was a recovery in the north and south. The indexes on Friday reached for trip from Brazil to China at 19.96 $/tn (for the C3 route), while rates from Continent to Asia closed at $ 37.15K/day (for the C9 route) and the Transatlantic round trips at $ 19.93K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north, the upward trend of the rate market continued due to the limited number of available vessels and the intense competition between charterers. In the south, there was a lot of activity at the beginning of the week, setting the tone for the rest of it. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached $ 16-18 K/day (delivery Asia), from Continent to Asia at $ 24-26 K/day (delivery in Continent) and the round Transatlantic trips at $ 19-21 K/day (delivery in Gibraltar).
On the other hand, in Asia, the strong demand for coal cargoes from Indonesia led the market to a rally in rates, which continued during the week. On the contrary, the North Pacific and Australia slowed down at the end of the week. Rates for round trips on the Indonesia-Far East route moved to $ 13-15K / day (delivery Far East).
For Supramaxes-Ultramaxes, Southeast Asia maintained its momentum, driven by increased demand for coal cargoes from Indonesia. Thus, there was a balance between supply and demand. Rates for UMXs for trips between SE Asia and the Far East went to 13.5-15K / day. Further north, in the Far East the market showed mixed trends as the North Pacific was calm and only the Back Haul trades showed interest. UMXs for NOPAC round trips were at $12-13.5K/day, for trips to W. C. India at $12.5-14K/day and for return trips to the Atlantic Basin (BH) at $12.5-14K/day.
In the Middle East Gulf and West C. India the market moved upwards as there was strong activity in both the Gulf and South Africa, which absorbed some of the available capacity. Rates for UMXs for Far East trips ranged between $13.5-15K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short trips between Middle Wast Gulf – West C. India from $13-14.5K/day and trips to the Atlantic Basin from $9.5-11K/day.
In the Atlantic Basin and especially the American Gulf, the short holidays returned with reduced activity, but with increased rates mainly for trips in mid-July. Rates for UMXs for Transatlantic trips reached $27-28.5K/day and to Asia from $27.5-29K/day. The ECSA region started the week with gains across all routes as vessel supply was tight and charterers were rushing to secure one for their cargoes. UMXs rates for SE Asia-China trips were at $25.5-27K/day and for Transatlantic trips (Mediterranean/Continent) at $24-25.5K/day.
Continent slowed down in terms of activity but rates maintained their momentum. Interest focused on trips to the East Coast of America. UMXs rates for round-local trips were at $10.5-12K/day, for SCRAP trips to the Mediterranean at $15-16.5K/day and to Asia at $17-18.5K/day. The Mediterranean showed a better picture on the eastern side towards the end of the week as there were some cargoes for the second half of July. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $ 14.5-16K/day (delivery Canakkale), to the other side of the Atlantic Basin at $ 11.5-13K/day and within the Mediterranean at $ 11.5-13K/day (excluding war zones).
In the Handies market, the market in Continent remained at the same levels. The fact that many vessels moved to the other side of the Atlantic Basin helped the market to achieve balance. Rates for the largest vessels in the category, for round trips, reached $ 7.5-9K/day, to the Mediterranean with scrap cargo at $ 8.5-10K/day and for Transatlantic trips at $ 6.5-8K/day.
The Mediterranean recorded losses as several vessels were immediately available and shipowners were forced to reduce their ideas in order to close some work. The rates of larger vessels (over 36K DWT) for trips within the Mediterranean moved at $ 8.5-10K/day (delivery in Canakkale), to Continent at $ 7.5-9K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $ 6.5-8K/day (delivery in Canakkale) and to Asia at $ 10.5-12K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market started the week calmly, while as the days passed, activity improved. The increase in the number of vessels left no room for improvements in rates. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged at $ 14-15.5K/day and to Asia at $ 16-17.5K/day.
The East Coast of South America (ECSA) region was under pressure as demand for the end of July was limited and capacity concentration was observed. However, the largest vessels in the sector competed with the Supramaxes in some cargoes. In addition, the north was calm. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent-Mediterranean) ranged at $ 17.5-19K/day and to Asia at $ 17-18.5K/day.
In Asia, the market, and particularly in the north, did not see any significant differences since there was a balance between vessels and cargo. Interest was focused on trips to the south. And in the south, the picture was similar. At the beginning of the week, some new cargoes appeared that helped the market. Further west, in the Middle East Gulf and W. C. India, the market followed the upward trends of its larger brothers (Supramaxes) and is expected to continue at the same pace in the coming days. The rates of the largest vessels in the category for round trips to the Far East and NOPAC closed at $ 9.5-11K / day, from SE Asia to China at $ 11.5-13K / day and from West C. India to China at $ 8.5-10K / day.

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