By Iakovos (Jack) Archontakis

Senior Maritime Strategy Consultant - Chartering Executive & TMC Shipping  Commercial Director

and

Dr. Fotios-Evangelos Karlis
Maritime Executive & Shipping Consultant

The freight market moved more or less at the same levels, recording marginal fluctuations across all segments compared to the previous week. Let us, however, take a closer look at how the market evolved by vessel size and region. More specifically, Capes rose by 3.85%, Kamsarmaxes by 2.15%, Ultramaxes (63) declined by 1%, and Handies increased by 2.21% compared to the previous week. As a result, the BDI rose by just 65 points week-on-week, closing at 2,730 points on Friday, May 1st.

Let us examine in more detail how the dry bulk market performed over the past week by vessel size, starting with the CAPEs. In Asia, freight rates recorded slight increases, despite the fact that miners remained active and there was a steady flow of coal cargoes. The index levels on the Australia–China route (C5) closed on Friday at $13.67/tn.

In the Atlantic, activity was limited, with an imbalance between supply and demand weighing against vessels at the beginning of the week, both in the north and the south. In the southern hemisphere, conditions gradually improved as the week progressed, whereas in the north no significant changes were observed. By Friday, rates for voyages from Brazil to China reached $35.05/tn (route C3), while rates from Europe to Asia closed at $68.19K/day (route C9), and transatlantic round voyages at $43.19K/day (route C8).

Turning to Kamsarmaxes, the Atlantic basin presented a generally subdued picture, with vessel supply increasing particularly in Northern Europe, while mineral and grain cargoes remained limited. Only cargoes from North America and the Gulf provided some sporadic support to the market. Indicatively, rates for voyages from the East Coast South America (ECSA) to the Far East reached $19–21K/day (delivery Asia), from Europe to Asia $23.5–25.5K/day (delivery Europe), and transatlantic round voyages $14–16K/day (delivery Gibraltar).

On the other hand, in Asia, Australia, Indonesia, and the North Pacific provided a steady flow of cargoes along with some attractive opportunities for modern, scrubber-fitted vessels. As a result, sentiment remained positive and owners found room to push their ideas upward. Rates for round voyages in Southeast Asia–Far East ranged at $21.5–23.5K/day (delivery Far East).

As for Ultramaxes, Southeast Asia began to lose momentum as the days progressed. Some coal cargoes from Indonesia provided support early in the week, but not enough to alter the overall sentiment. UMX rates for voyages between Southeast Asia and the Far East were assessed at $17.5–19K/day.

Further north, in the Far East, the market lost ground following a week of gains. Most cargoes had already been covered, with only limited fresh demand entering the market. Additionally, support from the North Pacific, backhaul trades, and China was lacking. UMX rates for round voyages in the North Pacific (NOPAC) stood at $17.5–19K/day, for trips to India at $24.5–26K/day, and for backhaul voyages to the Atlantic (BH) at $16.5–18K/day.

In the Middle East Gulf and West Coast India, the market came under pressure. On one hand, the negative influence of the declining Asian market, and on the other, the closure of key straits, led to significant delays in loading areas outside them, as vessels concentrated there. UMX rates for voyages to the Far East ranged at $13.5–15K/day (from WCI).

In the Atlantic, and particularly in the U.S. Gulf, there was no notable activity throughout the week. The most interest was seen in transatlantic voyages, followed by trips to Asia. UMX rates for transatlantic voyages reached $26.5–28K/day and to Asia $25.5–27K/day. The ECSA1 region showed slight improvements, with Southern Brazil leading the upward trend, while West Africa appeared more balanced. UMX rates for voyages to Southeast Asia–China ranged at $27.5–29K/day, and for transatlantic voyages (Mediterranean/Europe) at $28–29.5K/day.

Europe displayed limited activity, with all eyes focused on Geneva. Nevertheless, the restricted vessel supply forced charterers to increase their rate ideas. UMX rates for local round voyages stood at $21.5–23K/day, for scrap cargoes to the Mediterranean at $23.5–25K/day, and to Asia at $22–23.5K/day. The Mediterranean remained subdued, with an oversupply of tonnage and limited demand. However, increasing scrap cargoes and repositioning vessels helped contain the decline. Indicatively, a UMX for a Mediterranean–Asia voyage was fixed at $19–20.5K/day (delivery Canakkale), towards the other side of the Atlantic at $7.5–9K/day, and within the Mediterranean at $9.5–11K/day (excluding war zones).

In the Handies market, Europe lost the momentum of the previous week, moving at a slower pace. Cargo flow remained weak, with the majority of stems referring to the second half of May. Rates for the larger vessels in the segment for round voyages reached $13.5–15K/day, to the Mediterranean with scrap cargoes at $16.5–18K/day, and for transatlantic voyages at $8.5–10K/day. The Mediterranean declined due to an oversupply of vessels. Several owners opted to reposition towards Gibraltar in search of employment, while in many cases they were forced to accept lower numbers. Rates for larger vessels (above 36K DWT) for intra-Mediterranean voyages stood at $7.5–9K/day (delivery Canakkale), to Europe at $8–9.5K/day, to the other side of the Atlantic at $6.5–8K/day, and to Asia at $11–12.5K/day.

On the other side of the Atlantic, in the U.S. Gulf, the market remained relatively quiet. The attention of most shipping participants was focused on the events in Geneva. Nevertheless, the balance between supply and demand maintained a positive tone. Indicatively, rates for larger vessels for transatlantic voyages ranged at $15–16.5K/day and to Asia at $15.5–17K/day. The East Coast South America (ECSA) region was quieter towards the end of the week, as activity slowed mainly due to the Geneva conference and the weekend holidays. Vessel supply also increased slightly. As a result, rates for larger vessels from ECSA for transatlantic voyages (Europe–Mediterranean) stood at $22–23.5K/day and to Asia at $21.5–23K/day.

In Asia, particularly in the north, the market maintained its momentum for larger sizes across all routes. In the south, only minor fluctuations were observed, with Indonesia and Australia remaining at similar levels. Further west, in the Middle East Gulf and India, demand was subdued, while tonnage concentration remained high, particularly on the western coast of India. As long as the straits remain closed, all trade flows are being routed through areas outside them. Rates for larger vessels for round voyages in the Far East and NOPAC closed at $16.5–18K/day, from Southeast Asia to China at $14.5–16K/day, and from West Coast India to China at $10.5–12K/day.

Legal Disclaimer : This report is provided solely for general informational purposes and does not constitute investment or commercial advice. The information herein is based on sources believed to be reliable but is not guaranteed for accuracy or completeness. Any actions taken based on this content remain the sole responsibility of the reader.