The dry bulk cargo market finally showed an increase after four weeks (since January 10) of continuous decline, and in fact, a double-digit increase. The leaders in this course were the Panamaxes, which broke free and rose by almost 30% compared to the previous week, while the smaller sizes followed. Also, the weekly losses of the Capes were marginal. In detail, the Capes fell by 3.92%, the Kamsarmaxes increased by 29.4%, the Ultramaxes (63) by 12.2%, and the Handies by 8.61% compared to the previous week. Thus, the BDI fell by 209 credits compared to the previous week and closed at 815 credits on Friday, February 7.
Capesize market
Asia saw improvements at the start of the week, with more cargo and a reduction in the number of available vessels. This encouraged several shipowners to try their luck by staying in the region rather than moving to the Atlantic Basin. The index levels on the Australia-China route (C5) closed on Friday at $6.71/tn.
In the Atlantic Basin, particularly in the north, the market remained under pressure mainly on transatlantic trips due to the oversupply of vessels. On the contrary, trips to Asia showed a little more interest. The picture was similar in southern Brazil and western Africa, where rates moved at the same levels. Friday’s indexes reached up to $17.16/tn for trips from Brazil to China (C3 route), while Continent-to-Asia rates closed at $25.19K/day (C9 route) and Transatlantic round trips at $4.34K/day (C8 route).
Kamsarmax market
In the Atlantic Basin, particularly in the north, the market had a slow start to the week; however, activity quickly improved, mainly for transatlantic trips. Increases were also noted in the south, with rates for trips to China improving during the week by $1K. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $8.5-10.5K/day (delivery Asia), from Continent to Asia at $14-16K/day (delivery in Continent), and circular Transatlantic trips at $7-9K/day (delivery in Gibraltar).
On the other hand, in Asia, activity increased sharply with charterers and shipowners returning to their offices after the Chinese New Year celebrations. An increase in the flow of new cargoes and ships was observed, with additional support from the North Pacific. Rates for round trips in Indonesia-Far East moved at $7-9K/day (delivery Far East).
Supramax and Ultramax market
The market in Southeast Asia showed an increase after China returned, with coal cargoes driving the trend. There was also support from the Australian region. Ultramax (UMX) rates for trips between Southeast Asia and the Far East ranged from $8.5-10K/day. Further north, in the Far East, the market started the week hesitantly but picked up pace midweek, with more activity and increased rates in the North Pacific. UMX rates for round trips in the North Pacific (NOPAC) moved to $7-8.5K/day, for trips to West Coast India at $8.5-10K/day, and return trips to the Atlantic Basin (BH) at $7.5-9K/day.
In the Middle East Gulf and the West Coast of India, the market showed improved activity, with some new cargoes appearing and some vessels being closed, mainly for trips to the Far East. Rates for UMXs to the Far East ranged between $7-8.5K/day (from Middle East Gulf – West Coast India), for short trips between the Middle East Gulf – West Coast India from $7-8.5K/day, and trips to the Atlantic Basin from $4-5.5K/day.
The Atlantic Basin, especially the American Gulf, showed signs of recovery as demand improved somewhat during the week, and by the end, capacity supply began to tighten. Rates for UMXs to the Transatlantic range reached up to $14-15.5K/day and to Asia from $15-16.5K/day. The ECSA region had a positive start as Asia’s activity increased, resulting in more cargoes. Midweek, market demand was boosted by several transatlantic cargoes. UMX rates for trips to Southeast Asia-China were at $17.5-19K/day and for Transatlantic trips (Mediterranean/Continent) at $14-15.5K/day.
The Continent experienced another negative week with limited demand, and many vessels had to book some rates on an APS basis. UMX rates for round-local trips were at $7.5-9K/day, for scrap trips to the Mediterranean at $6-7.5K/day, and to Asia at $9-10.5K/day. The Mediterranean was positively affected by China’s return to activity, but charterers were not ready to change their stance. A UMX trip from the Mediterranean to Asia closed at $11.5-13K/day (delivery Canakkale), to the Atlantic Basin at $4.5-6K/day, and within the Mediterranean at $6.5-8K/day (excluding war zones).
Handysize market
In the Continent, the market proceeded with small increases, mainly for trips to the Mediterranean and for round trips. However, the overall picture remained negative, prompting many shipowners to consider moving to the Atlantic Basin. Rates for the largest vessels in the category for round trips reached up to $7-8.5K/day, for Mediterranean scrap cargoes at $7-8.5K/day, and for Transatlantic trips at $4.5-6K/day.
The Mediterranean showed improvements in rates on all routes as demand started to recover. Rates for the largest vessels (over 36K tons DWT) for intra-Mediterranean trips ranged from $4.5-6K/day (delivery Canakkale), to Continent at $4-5.5K/day (delivery Canakkale), to the Atlantic Basin at $4.5-6K/day (delivery Canakkale), and to Asia at $8-9.5K/day.
In the American Gulf, the market improved, but the previous oversupply limited significant increases. The largest vessels in this category earned $8.5-10K/day for Transatlantic trips and $12-13.5K/day for trips to Asia.
The ECSA region had a slow start, but new cargoes emerged, improving sentiment and pushing rates higher. The largest vessels from ECSA earned $10.5-12K/day for Transatlantic trips (Continent-Mediterranean) and $12-13.5K/day for trips to Asia.
In Asia, the market rebounded dynamically, though the previous capacity concentration limited rate increases. The Middle East Gulf and West Coast India also showed a more positive outlook, though rates remained low. Rates for round trips in the Far East and NOPAC closed at $6-7.5K/day, from Southeast Asia to China at $6.5-8K/day, and from the West Coast India to China at $6-7.5K/day.
Disclaimer
This report is for general information only and does not constitute investment advice.