News in English

Minor corrections for the dry bulk cargo market

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios –Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market once again showed marginal losses, only -2.5%, with all sectors showing single-digit weekly losses. Of all the sizes, Panamaxes stood out with an increase that approached 10%. In detail, Capes fell by 7.61%, Kamsarmaxes +8.86%, Ultramaxes (63) -1.67% and Handies +3.07%, compared to the previous week. Thus, the BDI fell by only 41 credits, compared to the previous week and closed at 1602 credits on Friday, March 28.
Let's see, in more detail, how the dry bulk cargo market moved last week by vessel size, starting with the CAPEs. In Asia, the week started with considerable optimism due to increased demand and activity from miners. However, as the week progressed, rates fell and there was a concentration of capacity. The index levels on the Australia-China route (C5) closed on Friday at $8.66/tn.
In the Atlantic Basin, and particularly in the south, the market was initially supported by the limited number of vessels moving to the region. However, downward corrections were noted in the middle of the week. In the north, interest focused on trips to Asia as transatlantic sailings were few. On Friday, indexes reached up to $23.08/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $41.28 K/day (for the C9 route) and transatlantic round trips at $19.82K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north, trips from Continent to Asia were the leading ones, as the increased volume of grain cargoes absorbed a large part of the available capacity. Additional support came from trips from the East Coast to w. C. India. In the south, there was a slow start to the week, however, in the second half, demand for loadings strengthened at the end of April. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 21-23K/day (delivery Latin America), from Continent to Asia at $ 17.5-19.5K/day (delivery in Continent) and the round Transatlantic trips at $ 10.5-12.5K/day (delivery in Gibraltar).
On the other hand, in Asia there was intense activity with an increase in rates mainly due to the limited activity in the north. Thus, North Pacific, Australia and Indonesia moved to higher levels, while there was also interest in season charters. Rates for round trips in Indonesia-Far East moved at $ 14.5-16.5K /day (delivery Far East).
For Supramaxes-Ultramaxes, in Southeast Asia the market showed mixed trends. At the beginning of the week there was a stability which was lost as the days progressed. Coal cargoes from Indonesia had a steady flow. UMXs rates for trips between SE Asia and Far East went to 12-13.5K /day. Further north, in the Far East the market was calm with rates declining on most routes. Any support to the market came from the steady flow of cargo to the North Pacific and back to the Atlantic Basin. UMXs rates for round trips to the North Pacific (NOPAC) were at $11.5-13K/day, for trips to W. C. India at $13-14.5K/day and return trips to the Atlantic Basin (BH) at $14-15.5K/day.
In the Middle East Gulf and West C. India the market showed increased activity mainly for readily available vessels with several new eastbound cargoes but also some Atlantic cargoes. Rates for UMXs to the Far East ranged between $11-12.5K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short trips between Middle East Gulf – West C. India from $10.5-12K/day and trips to the Atlantic Basinfrom $8-9.5K/day.
In the Atlantic Basin and especially the American Gulf, there was a two-speed movement. On the one hand, trips to Asia were scarce, while on the other hand, transatlantic trips offered more alternatives. Rates for UMXs to Transatlantic trips reached up to $16-17.5K/day and to Asia from $15.5-17K/day. The ECSA region declined in the first days of the week with limited demand for transatlantic trips. The second half of the week saw an improvement in cargo volumes to Asia. UMXs rates for trips to SE Asia-China were at $18.5-20K/day and for Transatlantic trips (Mediterranean/Continent) at $17-18.5K/day.
Continent appeared fairly balanced with demand and supply remaining at the same levels. UMXs for round-local trips were at $11.5-13K/day, for SCRAP trips to the Mediterranean at $13.5-15K/day and to Asia at $16-17.5K/day. The Mediterranean seems to have lost some of its momentum from the previous week as charterers preferred to hold off. Trips to America continued to offer a premium. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $13.5-15K/day (delivery Canakkale), to the other side of the Atlantic Basin at $7-8.5K/day and within the Mediterranean at $9-10.5K/day (excluding war zones).
In the Handies market, in Continent the market proceeded without any particular changes with a limited number of closures. Scrap cargoes and trips to West Africa continued to attract interest. Rates for the largest vessels in the category, for round trips, reached up to $ 12-13.5K/day, to the Mediterranean with scrap cargoes at $ 14-15.5K/day and for Transatlantic trips at $ 10.5-12K/day.
The Mediterranean, especially in the west, seemed to be affected by the slight retreat of Continent. Thus, in the west the waters were calm and interest focused on the Eastern Mediterranean and the Black Sea. Trips to the American Gulf continued to offer a satisfactory premium to vessels that could make this trips. The rates of the largest vessels (over 36K DWT) for trips within the Mediterranean were 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 $8-9.5K/day (delivery in Canakkale) and to Asia at $8-9.5K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market showed an increase in terms of activity and volume of closures. Japanese vessels continued to have an advantage over Chinese ones. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged from $ 10.5-12K/day and to Asia from $ 10-11.5K/day.
The East Coast of South America (ECSA) region started the week calmly, but as the week went on the climate improved. It should be noted that there continued to be a speed difference between the north and the south, with the north being calmer. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent - Mediterranean) ranged between $ 13.5-15K/day and to Asia from $ 14-15.5K/day.
In Asia, the week was calm both in the north and south, due to the reduced volume of cargo. Especially in the south, a positive point was the stability in the supply of vessels . Further west, in the Middle East Gulf and W. C. India, the market showed small positive corrections due to improved activity. The rates of the largest vessels in the category for round trips in the Far East and NOPAC closed at $ 9.5-11K / day, from S.E. Asia to China at $ 9.5-11K / day and from W. C. India to China at $ 6.5-8K / day.

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