Last week, the dry bulk market faced notable losses across all vessel sizes. Capes recorded a sharp weekly decline of 17.71%, while smaller vessel sizes—Kamsarmaxes, Ultramaxes, and Handies—experienced more moderate decreases of 6.76%, 1.55%, and 3.98%, respectively. The Baltic Dry Index (BDI) dropped by 116 points, closing at 1051 on Friday, December 13.
CAPEs: Sharp decline amid oversupply
Asia
Despite an initial uptick in cargo volumes, the market in Asia struggled due to an increasing number of vessels. The Australia-China route (C5) index closed at $6.99/ton.
Atlantic Basin
The Atlantic market weakened both in the north and south. In the northern Atlantic, trips to Asia dropped, while in the south, oversupply kept rates low despite optimistic demand forecasts for next month. The Brazil-China (C3) route closed at $16.23/ton, while Transatlantic round trips (C8) and Continent-to-Asia trips (C9) stood at $12.61K/day and $27.29K/day, respectively.
Kamsarmaxes: Mixed trends across regions
Atlantic Basin
In the north, transatlantic routes drew more interest than trips to Asia. Meanwhile, the southern Atlantic showed stability, with slight rate improvements due to limited vessel supply in certain periods. Rates from East Coast South America (ECSA) to Asia reached $9.5-11.5K/day, while transatlantic trips ranged between $8.5-10.5K/day.
Asia
The Asian market continued its downward trend, with sporadic demand from Indonesia failing to offset oversupply. Rates for Indonesia-Far East round trips settled at $10-12K/day.
Supramaxes-Ultramaxes: Pressure across regions
Asia
In Southeast Asia, increased vessel availability from West Coast India weighed on rates, despite cargo flows from Indonesia and Vietnam. Far East round trips were at $9-10.5K/day, while Australia-related routes remained subdued.
Middle East Gulf and West Coast India
Reduced demand in this region heightened competition, leading to lower rates. Short Gulf-West India trades dropped to $9.5-11K/day.
Atlantic Basin
In the American Gulf, rates focused on petcoke cargoes but remained calm overall. Transatlantic trips were at $20.5-22K/day, while ECSA to SE Asia-China routes recorded $19.5-21K/day.
Handies: Regional variations
Continent and Mediterranean
The Continent market was quiet, with limited activity and modest rates of $7-8.5K/day for transatlantic trips. In the Mediterranean, increased vessel availability outpaced cargo demand, with intra-Mediterranean trips at $6.5-8K/day and trips to Asia at $10.5-12K/day.
Americas
The American Gulf saw further declines, with rates for trips to Asia at $15.5-17K/day. In ECSA, delays in vessels pressured the market, and transatlantic rates ranged from $15-16.5K/day.
Final thoughts
As the holiday season approaches, market activity is expected to slow further. Oversupply remains a persistent challenge, especially in Asia and the Americas.
Warm wishes for a joyful Christmas and a prosperous New Year!