The dry bulk market recorded marginal losses of just -1.5%, with Capes remaining in the red while the other vessel sizes closed the week in positive territory. Weekly fluctuations, whether positive or negative, remained in the single digits across all segments. Specifically, Capes fell by 6.35%, Kamsarmaxes increased by 0.74%, Ultramaxes (63) rose by 8.81%, and Handies gained 4.15% compared to the previous week. As a result, the BDI declined by just 26 points compared to the previous week, closing at 1,643 points on Friday, March 21.
Let’s take a closer look at how the dry bulk market performed over the past week by vessel size, starting with CAPEs.
In Asia, the week was relatively calm due to the absence of mining companies. However, there is a differentiation in freight rates for April loadings. The index levels for the Australia-China route (C5) closed on Friday at $9.35/ton.
In the Atlantic, particularly in the north, some fixtures were recorded for voyages to Asia in mid-April, pushing the corresponding index higher. Brazil started the week quietly, but market conditions improved midweek as more cargoes emerged for the second half of April. By Friday, the indices for Brazil-China voyages reached $24.49/ton (C3 route), while freight rates from Europe to Asia closed at $42.31K/day (C9 route), and transatlantic round voyages settled at $19.95K/day (C8 route).
Kamsarmax market
In the Atlantic basin, particularly in the north, there was a noticeable shortage of cargoes, and general uncertainty prevailed, with all stakeholders adopting a wait-and-see approach. In the south, activity was higher, with freight rates varying significantly depending on loading dates, primarily for voyages to Asia. Indicatively, freight rates for voyages from the East Coast of South America (ECSA) to the Far East ranged from $13.5K to $15K/day + $350K–500K BB[1] (delivery in Latin America), from Europe to Asia at $16K–18K/day (delivery in Europe), and transatlantic round voyages at $9.5K–11.5K/day (delivery in Gibraltar).
On the other hand, in Asia, the market showed mixed trends, with rate variations mainly for North Pacific voyages. Period charter interest remained limited. Freight rates for round voyages in Indonesia-Far East ranged between $15K and $17K/day (delivery in the Far East).
Supramax-Ultramax Market
In Southeast Asia, the market lost ground throughout the week, with activity subdued and a noticeable absence of Australian cargoes. Freight rates for UMXs on intra-Southeast Asia-Far East routes ranged from $12.5K to $14K/day. Further north, the Far East market started the week strongly but slowed down midweek. The North Pacific stood out as an active region. Freight rates for UMXs on North Pacific round voyages (NOPAC) ranged between $12K and $13.5K/day, for trips to India at $13.5K–15K/day, and for backhaul voyages to the Atlantic (BH) at $13.5K–15K/day.
In the Middle East Gulf and West India, the market moved upward, mainly due to increased activity in the Far East and South Africa. UMX freight rates for trips to the Far East ranged from $10K to $11.5K/day (from the Arabian Gulf (AG)–West India (WCI)), for short-haul trips within the Arabian Gulf–West India at $8.5K–10K/day, and for voyages to the Atlantic at $6K–7.5K/day.
In the Atlantic, particularly the US Gulf, uncertainty remained due to pending USTR announcements. While transatlantic voyage volumes increased slightly, this was not reflected in freight rates. In most cases, charterers preferred to use their own vessels. UMX freight rates for transatlantic voyages stood at $14K–15.5K/day, while rates to Asia were between $15.5K and $17K/day.
The ECSA[2] region experienced a quiet week, with a limited number of transatlantic cargoes that were quickly absorbed, helping to support the market. The outlook for Asia-bound voyages was slightly better. UMX freight rates for trips to Southeast Asia-China ranged from $18.5K to $20K/day, while transatlantic voyages (Mediterranean/Europe) were at $17K–18.5K/day.
In Europe, market activity remained subdued, with limited demand. Voyages to the US Gulf continued to show some interest. UMX freight rates for regional-local round voyages stood at $10.5K–12K/day, for scrap cargoes to the Mediterranean at $13K–14.5K/day, and to Asia at $14K–15.5K/day.
The Mediterranean saw notable improvements, with the Eastern Mediterranean outperforming the Western part, while trips to the US offered a premium. For instance, UMX freight rates from the Mediterranean to Asia were $12K–13.5K/day (delivery in Canakkale), to the other side of the Atlantic at $7K–8.5K/day, and intra-Mediterranean voyages at $9K–10.5K/day (excluding conflict zones).
Handysize market
In Europe, the market remained steady with limited fixtures. Scrap cargoes in the Mediterranean and voyages to West Africa generated some interest. Freight rates for the largest vessels in this segment for round voyages reached $13K–14.5K/day, for scrap cargoes to the Mediterranean at $15K–16.5K/day, and for transatlantic voyages at $9.5K–11K/day.
The Mediterranean market moved at three different speeds. The Eastern Mediterranean saw declining demand, exerting downward pressure on freight rates, while the Western Mediterranean maintained its momentum. Meanwhile, voyages to the Americas moved upwards. Freight rates for the largest vessels (over 36K DWT) on intra-Mediterranean voyages ranged from $4.5K to $6K/day (delivery in Canakkale), to Europe at $5K–6.5K/day (delivery in Canakkale), to the other side of the Atlantic at $7K–8.5K/day (delivery in Canakkale), and to Asia at $7.5K–9K/day.
Across the Atlantic, the US Gulf market came under pressure due to vessel oversupply, despite an increase in cargo volumes. Notably, charterers were open to Chinese vessels for March loadings but not for April cargoes. Indicatively, freight rates for the largest vessels on transatlantic voyages ranged from $10K to $11.5K/day, while rates to Asia were also at $10K–11.5K/day.
The East Coast South America (ECSA) region was active with more cargoes, yet the overall market outlook remained unchanged. Positive factors included a balance between supply and demand and an increase in early April cargoes. As a result, freight rates for the largest vessels from ECSA for transatlantic voyages (Europe-Mediterranean) ranged from $13K to $14.5K/day, while rates to Asia stood at $12.5K–14K/day.
In Asia, particularly in the Far East, the market was stable, though limited vessel availability and steel cargoes from the north pushed rates higher. The southern market remained balanced with minimal fluctuations. Further west, in the Middle East Gulf, freight rates remained largely unchanged, though the Atlantic was not a particularly attractive destination. Freight rates for the largest vessels on intra-Far East and NOPAC round voyages were $11.5K–13K/day, for Southeast Asia-China trips at $9K–10.5K/day, and for West India-China voyages at $6.5K–8K/day.
[1] BB: Ballast Bonus
[2] ECSA: East Coast South America
Disclaimer
This report and the information contained herein are for general informational purposes only and does not constitute investment advice.