The dry bulk cargo market showed small corrections in all sizes. However, the largest sizes showed marginal losses, while the smallest moved in the green compared to the previous week. In detail, Capes decreased by 5.85%, Kamsarmaxes by -3.39%, Ultramaxes (63) increased by +0.53%, and Handies by +4.87% compared to the previous week. Thus, the BDI fell by 48 points compared to the previous week and closed at 1340 points on Friday, May 23.
Capesize performance
In Asia, increased activity from miners and operators led to a rise in the indexes. In fact, the main index of the C5 region gained over $0.3/ton during the week. The index levels on the Australia–China route (C5) closed on Friday at $8.55/ton.
In the Atlantic Basin, particularly in the south, the market started the week calmly but picked up mid-week with more cargo for mid-June. Conversely, in the north, the picture worsened due to limited cargoes heading to the other side of the Atlantic Basin and to Asia. The indexes on Friday reached $18.84/ton for trips from Brazil to China (C3 route), while rates from the Continent to Asia closed at $33.81K/day (C9 route), and Transatlantic round trips at $15.32K/day (C8 route).
Kamsarmax trends
In the Atlantic Basin, the week began sluggishly but quickly recovered with more cargoes both to Asia and within the Atlantic. Further south, in Latin America, figures rose for June cargoes. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached $13-15K/day (delivery Asia), from the Continent to Asia at $16-18K/day (delivery Continent), and for Transatlantic round trips at $8.5-10.5K/day (delivery Gibraltar).
In Asia, mixed trends were observed. The week started and ended slowly but improved mid-week. A key market feature was the date mismatch between cargoes and vessel availability. Indonesia–Far East round trips were priced at $10.5-12.5K/day (Far East delivery).
Supramax and Ultramax developments
In Southeast Asia, the market declined due to excess vessel supply, while coal cargoes from Indonesia were limited. Some support came from Australia via grain and salt cargoes. UMX rates for trips between SE Asia and the Far East were at $10.5-12K/day.
Further north, in the Far East, downward trends continued, with the North Pacific moving slowly and a shortage of steel cargoes to the Atlantic. UMX rates for NOPAC round trips stood at $10.5-12K/day, to W.C. India at $13.5-15K/day, and for backhaul trips to the Atlantic Basin at $13-14.5K/day.
In the Middle East Gulf and W.C. India, the market remained stable. Vessel congestion was noted, but operational delays due to monsoons kept several vessels occupied. UMX rates for trips to the Far East ranged from $13.5-15K/day, short MEG–WCI trips at $13-14.5K/day, and trips to the Atlantic at $9.5-11K/day.
In the Atlantic Basin, particularly the U.S. Gulf, activity increased after charterers returned from Copenhagen. Cargoes—especially coal and petcoke—picked up, targeting both Asia and the Atlantic Basin. Transatlantic and Far East trips reached $17.5-19K/day.
In ECSA, most May cargoes were covered with the focus shifting to June. There was steady river cargo flow, though calmness prevailed in routes to Asia. UMX rates to SE Asia–China stood at $18-19.5K/day, and Transatlantic trips (Med/Continent) at $19.5-21K/day.
The Continent showed signs of recovery due to reduced capacity, leading to improved rates. UMX rates for local round trips were at $7.5-9K/day, for scrap trips to the Mediterranean at $12.5-14K/day, and to Asia at $14.5-16K/day.
In the Mediterranean, early-week cargoes from both ends of the basin provided a boost, but a balance returned mid-week. UMX rates for trips to Asia stood at $13.5-15K/day (delivery Çanakkale), to the Atlantic Basin at $6-7.5K/day, and within the Med at $8.5-10K/day (excluding war zones).
Handysize market overview
In the Continent, market momentum shifted positively, with small rate improvements. For larger vessels, round-trip rates reached $8-9.5K/day, scrap cargo to the Med at $10.5-12K/day, and Transatlantic trips at $8-9.5K/day.
The Mediterranean showed a two-speed dynamic: the Western Med had more cargo, while the Black Sea saw fewer closures due to mismatched expectations. Larger vessel rates for intra-Med trips (delivery Çanakkale) ranged at $6.5-8K/day, to the Continent at $6.5-8K/day, to the Atlantic Basin at $6.5-8K/day, and to Asia at $8.5-10K/day.
In the U.S. Gulf, activity increased from mid-week onward, supported by cargo flows from the Gulf and East Coast. Larger vessel rates ranged between $11.5-13K/day for Transatlantic trips and $12.5-14K/day to Asia.
ECSA maintained stable rates, with several fixtures at prior levels. Despite growing demand, increased vessel supply curbed rate growth. Rates for larger vessels on Transatlantic trips (Continent–Mediterranean) were at $15-16.5K/day, and to Asia at $14-15.5K/day.
In Asia, market balance prevailed both in the north and south, supported by steady demand from Australia. In the Middle East Gulf and W.C. India, rates remained steady. Larger vessel rates for Far East/NOPAC round trips closed at $10.5-12K/day, SE Asia to China at $12.5-14K/day, and W.C. India to China at $8-9.5K/day.
Disclaimer
This report and the information contained herein is for general information only and does not constitute investment advice.