The dry bulk cargo market continued to move positively, with upward trends noted in all sizes, and mainly in Panamaxes, which saw a double-digit weekly increase compared to the previous week. Specifically, Capes rose by 8.28%, Kamsarmaxes +11.32%, Ultramaxes (63) +2.48%, and Handies +2.18%, compared to the beginning of the previous month. Thus, the BDI rose by 147 credits, compared to the previous week, and closed at 2126 credits on Friday, September 12.
Let’s see, in more detail, how the dry bulk cargo market moved last week by vessel size, starting with the Capes.
Capesize: Positive momentum driven by miners
In Asia, miners were active, strengthening the main route Western Australia–China at the beginning of the week. However, the market gradually declined but stabilized above $10 per ton. The index levels on the Australia–China route (C5) closed on Friday at $10.25/tn.
In the Atlantic Basin, and especially in the north, the climate was positive, despite the fact that activity remained at low levels. On the contrary, in the south, there was more mobility in the middle of the week. It should also be noted that, for loadings in the 2nd half of September, we saw higher numbers compared to the beginning of the month. The indexes on Friday reached up to $23.59/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $45.22K/day (for the C9 route) and Transatlantic round trips at $24.56K/day (for the C8 route).
Kamsarmax: Strong gains in Atlantic and steady Asia
In the Atlantic Basin, both in the north and in the south, the week started dynamically and continued at the same pace until the end. Transatlantic trips were the mainstay, and were followed, but at a slower pace, by trips to Asia. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $18–20K/day (delivery Asia), from Continent to Asia at $29–31K/day (delivery in Continent), and round Transatlantic trips at $22.5–24.5K/day (delivery in Gibraltar).
On the other hand, in Asia, the vast majority of closures took place in the middle of the week, while at the beginning and at the end, there was no particular activity. The North Pacific stood out with a large volume of cargo. Rates for round trips in Southeast Asia–Far East moved at $14–16K/day (delivery Far East).
Supramax–Ultramax: Mixed activity, regional contrasts
Southeast Asia showed less stability; however, most closings were at the same levels as in the previous period. UMXs rates for trips between SE Asia and Far East went to $14.5–16K/day. Further north, in the Far East, the market showed intense activity with several discussions and exchanges of offers. However, a small increase in supplied capacity, which was not accompanied by a corresponding increase in demand, led to a marginal drop in rates. UMXs for round trips in the North Pacific (NOPAC) were $14.5–16K/day, for trips to W. C. India $16.5–18K/day, and for return trips to the Atlantic Basin (BH) $14–15.5K/day.
In the Middle East Gulf and W. C. India, the market moved positively thanks to fertilizer cargoes, which strengthened rates in W. C. India. UMXs for trips to the Far East were $13–14.5K/day (from Middle East Gulf [MEG]–West C. India [WCI]), for short trips between Middle East Gulf–West C. India $14.5–16K/day, and for trips to the Atlantic Basin $12–13.5K/day.
In the Atlantic Basin, and especially the American Gulf, it remained on an upward trend, as the supply of vessels was limited and many vessels were closed with delivery to Continent. UMXs rates for Transatlantic trips reached up to $32.5–34K/day, and to Asia at $31–32.5K/day. The ECSA region showed sluggish activity in the first half of the week. However, in recent days, there has been an improvement for trips to Asia. Additional support came from West Africa. UMXs rates for trips to SE Asia–China moved to $27.5–29K/day, and for Transatlantic trips (Mediterranean/Continent) at $24.5–26K/day.
Continent experienced large increases driven by scrap cargoes. The number of vessels was constantly decreasing, resulting in shipowners constantly revising their ideas upwards. UMXs rates for round-local trips moved to $15–16.5K/day, for scrap trips to the Mediterranean at $23–24.5K/day, and to Asia at $23.5–25K/day. The Mediterranean was under pressure, as activity was sluggish for the 2nd half of September. In the Eastern Mediterranean, demand was low but steady, while in the Western Mediterranean, demand was not of interest. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $21.5–23K/day (delivery Çanakkale), to the other side of the Atlantic Basin at $12.5–14K/day, and within the Mediterranean at $15.5–17K/day (excluding war zones).
Handysize: Steady in Atlantic, softer in Mediterranean and Asia
In Continent, the market started the week with reduced demand; but as the days passed, the flow of cargo improved, raising the numbers. The rates for the largest vessels in the category, for round trips, reached up to $13–14.5K/day, to the Mediterranean with scrap cargo at $15.5–17K/day, and for Transatlantic trips at $11–12.5K/day.
The Mediterranean closed the week down, as demand was low in both the Eastern and Western Mediterranean. There may have been some cargo from the Black Sea, but it was not enough to absorb the increasing capacity. The rates of larger vessels (over 36K DWT) for trips within the Mediterranean moved at $11–12.5K/day (delivery in Çanakkale), to Continent at $10.5–12K/day (delivery in Çanakkale), to the other side of the Atlantic Basin at $9–10.5K/day (delivery in Çanakkale), and to Asia at $13–14.5K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market maintained its momentum despite the reduced activity. The East Coast was of particular interest, as the gap between charterers’ and shipowners’ offers in the Gulf was large. For example, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged from $19.5–21K/day, and to Asia from $16.5–18K/day.
The East Coast of South America (ECSA) region moved at a slow pace. However, the limited capacity offered helped to increase the rates. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent–Mediterranean) moved from $21–22.5K/day, and to Asia from $18–19.5K/day.
In Asia, and particularly in the north, the market showed signs of fatigue, with the climate favoring charterers despite the steady flow of cargo. In the south, calm prevailed without many new cargoes, and shipowners with immediately available vessels were looking for opportunities.
Further west, in the Middle East Gulf and W.C. India, there were no particular differences compared to the previous week. The rates of the largest vessels in the category for round trips in the Far East and NOPAC closed at $10.5–12K/day, from SE Asia to China at $13.5–15K/day, and from West 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.