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The dry bulk cargo market proceeded with a fall the pas week. All sizes showed a downward trend, with smaller sizes (Handies, Supramaxes and Kamsarmaxes) noting the most significant fall. Specifically, Capes retreated by 0,65%, Kamsarmaxes -8.1%, Supramaxes -6.5% and Handies by -4.3% compared to the past week. With that given, BDI dropped by 117 credits (-5%) and closed at 2214 credits on Friday, the first of July.
Let’s now see more specifically, how the dry bulk cargo market moved last week, starting off with Capes. In Asia the losses were not considerable, since raise of vessels number and the limitation of exports from Australia lead to freight drop. The Levele of freights regarding route Australia-Chinatown (C5) closed at 11,53$/tn on Friday.
In North Atlantic the market was calm and only by the middle of the week some activity was observed with some bookings on higher levels than the past period. However, the last days this rhythm retreated. Similar image was illustrated by Brazil as well, from which there are many iron ore cargoes. Friday freights regarding trips from Brazil to China reached up to $30,4 /tn (for route C3 ), while rates from Continent to Asia closed at $44,53 K/day (for rote C9) and regarding transatlantic round trips at $26,2 K/ day (for route C8).
Considering Kamsarmaxes, in the Atlantic Basin the market started off downwards, with owners discussing on lower numbers. In East Coast of South America (ECSA) in the beginning of the week there were some discussions about vessels at Asia and vessels already at south Atlantic as well. In the middle of the week a slight raise of activity as in the North as much in the South, that however did not remained and as a result the drop of the market continued. Indicatively, rates regarding trips from ECSA to the Far East reached up to $23-24,5K/ day (delivery in Asia), from the UK gulf and the North Coast of South America to Continent at $21-23K / day (delivery at Continent) and as regards local trips in North Continent at $23-25 K / day.
On the other hand, in Asia, the week passed pressing the owner sides, while rates retreated but the Atlantic Basin did not consist an appealing alternative option, due to the bad image. Rates regarding round trips in Australia-Far East moved between $20-21,5 K/ day.
Regarding Supramaxes-Ultramaxes in south-east Asia the week started off hopeful for the owners with some cargoes from Australia. However, the absences of coal from Indonesia and the raising number of vessels pug pressure on the market. SMX’s rates regarding trips between S.E. Asia and the Far East increased at $25-26,5 K/ day. Northern, in the Far East the market presented decreased activity, with Chinese exports remaining on the lower levels. SMX’s rates regarding round trips to NOPAC moved between $24-26K / day, for trips to W. C. India at $23,5-24,5 K/ day and regarding returning trips to the Atlantic Basin (BH) at $28,5-29,5 K / day.
In the Middle East’s Coast and W. C. India the market kept on moving downwards while Eid period is coming. SMX’s rates regarding trips to the Far East dropped at $27-28,5 K / day (from Middle East Guld [M. E. G.] – W. C. India), regarding short trips between M. E. G. – W. C. India at $ 23,5-24,5 K/ day and for trips to the Mediterranean at $ 28,5 -30 K/ day.
In the Atlantic Basin and especially in the U. K. Gulf the market presented a better image compared to the previous period due to some new cargoes, that enhanced demand. SMX’s rates regarding transatlantic trips recreated at $23-24 K / day and to Asia at $ 25-26 K / day. ECSA area moved on lower levels, compared to last week. Especially in North Brazil, increased offered capacity was observed by moving vessels to this area. SMX’s rates regarding trips to S. E. Asia – China fell at $31-32 K / day and regarding transatlantic trips (Mediterranean-Continent) at $ 34-35,5 K / day.
Continent’s market presented more activity and increased demand, mainly during the second half of the week. Given that, we observed improvements mainly regarding local trips to the Mediterranean. SMX’s rates regarding round local trips moved between $17-18 K / day, as regards trips with scrap cargo to the Mediterranean between $18-19,5 K /day and to Asia between $19-20,5 K/ day. In the Mediterranean the market lost more ground, due to decreased volume of cargo, that lead to drop of rates regarding local trips. On the contrary, longer trips to the other side of the Atlantic Basin and Asia presented an upward trend. Indicatively, it is claimed that a SMX for trips from the Mediterranean to Asia closed at $25-26 K/day (delivery at Canakkale), to the other side of the Atlantic Basin at $19-20 K / day and in the Mediterranean at $ 18,5-19,5 K / day.
Handies market, in the Continent stabilizing trends were observed. Many vessels are moving to the other side if the Atlantic Basin, but still supply is higher than demand. We are hoping that wheat cargoes from France will support the market. Rates of the bigger vessels of the category, regarding round trips dropped at $ 15,5-16,5 K / day, to the Mediterranean with scrap cargo at $14-15,5 K / day and regarding transatlantic trips at $ 13-14 K / day.
In the Mediterranean the appearance of some cargoes for the beginning of July and the limited number of vessels, was enough to change the environment of the market. Although, available vessels are still enough to let rates raise. Rates of the bigger vessels (past 36K tonne DWT) regarding trips in the Mediterranean moved between $19-20,5 K / day (delivery at Canakkale), to Continent at $18,5-19,5 K / day (delivery at Canakkale), to the other side of the Atlantic Basin at $ 17-18,5 K / day (delivery at Canakkale) and to Asia at $21-22 K / day.
On the other side of the Atlantic Basin, the U. K. Gulf retreated with the number of available vessels remaining high. However, we are expecting more cargoes to appear the following days hoping that it will stabilize the image of the market. Indicatively, rates of the bigger vessels of the category regarding tripsto the other side of the Atlantic Basin decreased at $13-14 K / day and in Asia at $ 15,5-16,5 K / day.
ECSA’s market presented a downward since offered capacity was burdened with new vessels that moved from the East. Given that, rates of the bigger vessels of ECSA area regarding transatlantic trips (Continent-Mediterranean) moved between $26,5-27,5 K / day and to Asia at $ 29-30,4 K / day.
In Asia, and especially in W. C. India and in the Middle East’s gulf the market presented slight changes and in general, activity remained on the same levels keeping rates stable. In China obstacles due to the lockdowns are still observed. However, in trips to West we observed slight changes compared to last week. Southern, recession continued since Indonesia and Australia were calm. Rates of the bigger vessels of the category regarding round trips to the Far East and NOPAC closed at $ 21,5-23 K / day, from the S. E. Asia to China at $ 21-22,5 K day and from W. C. India to China at $ 27,5-28,5 K / day.

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