The dry bulk cargo market continued its upward trend, with the largest sizes showing double-digit weekly increases, pulling the general index up by almost 20%. Handies and Ultramaxes also recorded single-digit gains. Specifically, Capes rose by 17.97%, Kamsarmaxes by 37.22%, Ultramaxes (63) by 7.61%, and Handies by 2.92% compared to the previous week. Thus, the BDI rose by 269 credits compared to the previous week and closed at 1,400 credits on Friday, March 14.
Capesize market
In Asia, continuous activity from the three main miners increased the volume of coal cargoes. Some cargoes from operators were added to these, further strengthening the market. However, some downward corrections were observed at the end of the week. The index levels on the Australia-China route (C5) closed on Friday at $10.67/tn.
In the Atlantic Basin, particularly in the south, the limited number of vessels strengthened rates, while the enrichment of the market with new cargoes offered additional support. In the north, the market was calm, with few new cargoes and limited activity. The indexes on Friday reached up to $24.36/tn for trips from Brazil to China (for the C3 route), while rates from the Continent to Asia closed at $43.13K/day (for the C9 route), and transatlantic round trips at $19.64K/day (for the C8 route).
Kamsarmax market
In the Atlantic Basin and mainly in the north, the week started calmly; however, the market quickly picked up speed, with the North Coast of South America (NCSA) recording some high closes. In the south, the market moved upwards for loadings at the end of the month and the beginning of the next. Indicatively, the rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $14-15K/day + $400-500K BB (delivery Latin America), from the Continent to Asia at $16.5-18.5K/day (delivery in Continent), and the round transatlantic trips at $10-12K/day (delivery in Gibraltar).
On the other hand, in Asia, rates were gaining ground day by day as Australia and the North Pacific supplied the market with new cargoes. In addition, the avoidance of Chinese vessels from approaching American ports limited the number of vessels that could make this trade and gave the opportunity to the remaining shipowners to claim higher numbers. Rates for round trips in Indonesia-Far East moved to $10.5-12.5K/day (delivery Far East).
Supramax-Ultramax market
In Southeast Asia, the market showed upward trends, with satisfactory activity from Indonesia to W.C. India, while more support from Australia is expected in the near future. Rates for UMXs for trips between SE Asia and the Far East ranged from $12.5-14K/day. Further north, in the Far East, the market showed signs of recovery thanks to the improved North Pacific picture. There is general uncertainty due to the U.S. trade announcements towards China. UMXs rates for round trips in the North Pacific (NOPAC) were at $12.5-14K/day, for trips to W.C. India at $13.5-15K/day, and return trips to the Atlantic Basin (BH) at $13.5-15K/day.
In the Middle East Gulf and West C. India, the market had a slow start to the week, but a peak was observed in the middle, mainly due to the positive course of future forecasts. At the end of the week, the rates fell. Fares for UMXs to the Far East ranged between $10-11.5K/day (from the Middle East Gulf (MEG) – West C. India (WCI)), for short trips between the Middle East Gulf – West C. India from $8-9.5K/day, and trips to the Atlantic Basin from $5.5-7K/day.
The Atlantic Basin, and especially the American Gulf, recorded a slight improvement, with satisfactory activity leading to a slight increase in rates, mainly for March cargoes. UMXs for transatlantic trips reached up to $14-15.5K/day and to Asia from $15.5-17K/day. The ECSA region experienced a quiet week with limited new cargo volume, which was booked immediately. Cargoes to Asia were also limited. UMXs rates for trips to SE Asia-China ranged between $18-19.5K/day, and for transatlantic trips (Mediterranean/Continent) from $16.5-18K/day.
Handysize market
In the Continent, the market increased, with fewer vessels in the region and an increasing number of cargoes. Thus, closings were recorded at a better level compared to the previous period. Rates for the largest vessels in the category, for round trips, reached up to $11.5-13K/day, to the Mediterranean with scrap cargoes at $12.5-14K/day, and for transatlantic trips at $9.5-11K/day.
The Mediterranean declined both due to the lack of grain from the Black Sea and because Chinese vessels avoided trips to the other side of the Atlantic Basin, thus limiting their options. The rates of larger vessels (over 36K tons DWT) for trips within the Mediterranean moved to $5-6.5K/day (delivery in Canakkale), to the Continent at $5.5-7K/day (delivery in Canakkale), to the other side of the Atlantic Basin at $7-8.5K/day (delivery in Canakkale), and to Asia at $7.5-9K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market was active with a large number of closures. However, the number of vessels outweighed the number of cargoes. In addition, trade frictions between China and America have created a climate of uncertainty. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic ranged at $10-11.5K/day and to Asia at $12.5-14K/day.
The East Coast of South America (ECSA) region was pressured by the ever-increasing number of vessels heading to the region, with the greatest burden being borne by the north. Thus, the rates of the largest vessels from the ECSA region for transatlantic trips (Continent-Mediterranean) ranged at $13.5-15K/day and to Asia at $12.5-14K/day.
In Asia, improvements were observed with a steady flow of cargo both north and south, while capacity supply remained limited. It should be noted that especially in the south, there was interest in the larger vessels in the sector, resulting in pressure on the smaller ones. Further west, in the Middle East Gulf and W.C. India, the Holi Festival and Ramadan slowed down activity. Rates for the largest vessels in the category for round trips in the Far East and NOPAC closed at $9-10.5K/day, from SE Asia to China at $8.5-10K/day, and from West C. India to China at $6.5-8K/day.
Disclaimer
This report and the information contained herein are for general information only and do not constitute investment advice.