The dry bulk cargo market started the year on a positive note, as Capes and Kamsarmaxes closed the week on a positive note. In fact, Capes recorded a double-digit increase compared to the week before the holidays. On the contrary, the smaller sizes moved downwards.
In detail, Capes fell by 11.73%, Kamsarmaxes -1.92%, Ultramaxes (63) -5.94% and Handies -5.2%, compared to the previous week. Thus, the BDI fell by 61 credits, compared to the previous week and closed at 1072 credits on Friday, January 3.
Let’s see, in more detail, how the dry bulk cargo market moved last week by vessels size, starting with the CAPEs. In Asia, there was a lot of activity on the Western Australia-China route during the short week. There were also several closings and discussions and negotiations at the same or slightly higher levels than before the holiday period. The index levels on the Australia-China route (C5) closed on Friday at $7.28/tn.
In the Atlantic Basin, and especially in the Brazil region, increased demand was observed and the closings that were made were at higher levels. In the north, there was optimism for an improvement in the market despite the increased EU ETS costs. The indexes on Friday reached up to $18.29/tn for trips from Brazil to China (for the C3 route), while rates from Continent to Asia closed at $30.28 K/day (for the C9 route) and Transatlantic round trips at $11.5K/day (for the C8 route).
Regarding Kamsarmaxes, in the Atlantic basin and especially in the north, the increased demand for trips to Asia pushed up rates, dragging the south on an upward path. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $ 8-10K/day (delivery Asia), from Continent to Asia at $14-16K/day (delivery in Continent) and the circular Transatlantic trips at $9.5-11.5K/day (delivery in Gibraltar).
On the other hand, in Asia there may not have been significant support from Australia and the North Pacific, however, a limited number of available vessels in the north led to an increase in rates. Roundtrip rates for Indonesia-Far East trades were $3-5K/day (Far East delivery).
For Supramaxes-Ultramaxes, the market in Southeast Asia remained under pressure with few new cargoes coming to the surface. UMXs rates for trades between SE Asia and the Far East were $8.5-10K/day. Further north, in the Far East, the market was quiet. The few cargoes that were on the market were covered by charterers’ vessels and shipowners are hoping for any improvement in the next two weeks, before the Chinese New Year. UMXs’ rates for round trips in the North Pacific (NOPAC) were $8-9.5K/day, for trips to W. C. India at $9.5-11K/day and for return trips to the Atlantic Basin (BH) at $7.5-9K/day.
In the Middle East Gulf and West C. Indies the market showed reduced activity as most of the operators are on vacation. We expect to see when they will return to active activity in the coming period. UMXs’ rates for trips to the Far East ranged between $9.5-11K/day (from Middle’s East Gulf (MEG)-West C. Indies [WCI]), for short trips between Middle East Gulf-West C. India at $9.5-11K/day and for trips to the Atlantic Basin at $6.5-8K/day.
In the Atlantic Basin and especially the American Gulf, it lost any stability it had shown before the holidays. Now most of the interest was focused on cargoes to Asia. UMXs rates for Transatlantic trips reached up to $18-19.5K/day and to Asia at $ 19.5-21K/day. The ECSA region maintained its momentum due to limited capacity supply despite the short week due to various holidays. SMXs rates for trips to SE Asia-China moved at $19.5-21K/day and for Transatlantic trips (Mediterranean/Continent) at $17.5-19K/day.
Continent remained quiet as expected. Demand was extremely limited and capacity supply began to accumulate. The UMXs’ rates for round-local trips were at $12-13.5K/day, for trips with SCRAP cargoes to the Mediterranean at $13-14.5K/day and to Asia at $14.5-16K/day. The Mediterranean showed significant improvements mainly on the western side with an increase in cargoes for the second half of the month. However, the oversupply of vessels limited any increase in rates. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $13-14.5K/day (delivery Canakkale), to the other side of the Atlantic Basin at $6-7.5K/day and within the Mediterranean at $7.5-9K/day (excluding war zones).
Disclaimer
This report and the information contained herein are for general information only and does not constitute an investment advice.