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With a new drop the dry bulk cargo market proceeded the past week. All sizes sustained their downward trend, with Kamsarmaxes noting the biggest fall. Specifically, Capes retreated by 4.6%, Kamsarmaxes -10.25%, Supramaxes -5.5% and Handies -7.1%, compared to last week. With that given, BDI further decreased by 147 credits (-6.6%) and closed at 2067 credits on Friday, the 8th of July.
Let’s now see more specifically, how the dry bulk cargo market moved during the last week as per vessel’s size, starting off with Capes. In Asia we observed a decrease of the problems that were caused from the pandemic and the bottleneck in Chinese ports, increasing though available vessels. Thus the increase of cargoes was easily absorbed and freights remained under pressure. Freights levels regarding route Australia-China (C5) closed at 11.39$/ tn on Friday.
In the Atlantic Basin perhaps the market moved downwards, but downwards rhythms were limited and losses as well, compared to last week. In the North Atlantic more booking were noted on slightly lower levels from the last week of June. Northern, Brazil presented increased exports but the main index C3 note a borderline weekly drop of 1%. Friday’s freights regarding trips from Brazil to China reached at $ 30.13 / tn (for route C3), while rates from Continent to Asia closed at $ 43.75 K/ day (regarding route C9) and regarding transatlantic round trips at $ 23.99 / day (for route C8).
Considering Kamsarmaxes, in the Atlantic Basin the market started the week of with many promises. Although they were quickly disproved and we saw another negative week. In the North, lack of cargoes to Asia was obvious and only some transatlantic cargoes were options of occupation to owners. in the North the number of available vessels kept on increasing with moving vessels to Asia. Thus charterers imposed their ideas that caused negotiations. Indicatively, rates regarding trips from East Coast of South America (ECSA) to the Far East reached up to $ 42-44 K/ day (delivery at ECSA), from the U. K. Gulf and North Coast of South America to Asia up to $ 31-32 K/ day (delivery at Gibraltar) and to North Continent up to $ 39-40 K/ day (delivery at U. K. Gulf. )
On the other hand, in Asia, the week moved calmly. Indonesia and Australia did not present significant movement and only during the end of the week some cargoes from the North Pacific enhanced the market without this to be enough to improve the general image. Rates regarding round trips to Australia-Far East moved between $ 17-19 K/ day.
As regards Supramaxes-Ultramaxes in S. E. Asia the market presented a new drop, since as in Indonesia as much in Australia could not absorb the increased supply of vessels. SMX’s rates regarding trips between S. E. Asia and the Far East dropped at $ 21-22.5 K/ day. Northern, in the Far East the market lost further ground. Cargoes’ volume from the North was limited and only some cargoes to the Atlantic Basin disrupted the calm waters. SMX’s rates regarding round trips in NOPAC moved between $ 19-20.5 K/ day, for trips to W. C. India between $ 23.5-24.5 K/ day and regarding returning trip to the Atlantic Basin (BH) between $ 25.5-26.5 K/ day.
In the Middle East Gulf and W. C. India the market was calm, with few new cargoes and bookings. Given the celebrations of Eid Mubarak we are expecting the market to move on the same rhythms during the next week as well. SMX’s rates regarding trips to the Far East dropped at $ 22-23.5 K/ dah (from Middle East Gulf [MEG] – W. C. India), regarding short trips between MEG – W. C. India at $ 21.5-22.5 K / day and regarding trips to the Mediterranean at $ 25-26.5 K/ day.
In the Atlantic Basin and especially in the U. S. Gulf we observed some improvements, while there were some cargoes from the other side of the Atlantic. Thus rates regarding some routes presented a borderline increase, compared to last week. SMX’s rates regarding transatlantic trips increased at $ 26-27 K/ day. ECSA area proceeded with a downward trend, with demand being limited. A positive sign was the fact that supplied capacity is not expected to increase while vessels at W. Africa are finding some occupation at south. SMX’s rates for trips to S. E. Asia – China dropped at $ 28-29 K/ day and regarding transatlantic trips (Mediterranean-Continent) a $ 31-32.5 K/ day.
Continent’s market was under pressure, however some scrap cargo to the Mediterranean improved the environment. SMX’s rates regarding round-local trips moved between $ 17-18 K/ day, regarding trips with Scrap cargo to the Mediterranean between $ 18-19.5 K/ day and to Asia between $ 18-19 K/ day. In the Mediterranean the market retreated due to the low activity and demand. Indicatively, it is claimed that an SMX for a trips from the Mediterranean to Asia closed at $ 21-22 K/ day (delivery at Canakkale), to the other side of the Atlantic at $ 17-18.5 K/ day and in the Mediterranean at $ 18.5-19.5 K/ day.
Handies market, in Continent, we saw a dynamic start with some cargoes of wheat. However these were closed quickly and there was not a respective continue during the week. Rates of the bigger vessels of the category, regarding round trips fell at $ 13.5-14.5K/ day, to Mediterranean with scrap cargo remained at $ 14-15.5 K/ day and regarding transatlantic trips at $ 13-14 K/ day.
In the Mediterranean the market was more active, compared to last week, however many vessels that are open in the area dropped rates even more. Rates of the bigger vessels (past 36 K tn DWT) regarding trips in the Medietrranean moved between $ 17-18.5 K/ day (delivery at Canakkale), to Continent between $ 18-19 K/ day (delivery at Canakkale), to the other side of the Atlantic Basin between $ 15-16 K/ day (delivery at Canakkale), and to Asia at $ 18-19 K/ day.
On the other side of the Atlantic Basin, we observed U. K. Gulf to stabilize and spare some cargoes that appear in the middle of the week. However, the increased number of available vessels did not let any merge of optimism. Indicatively, rates of the bigger vessels of the category regarding trips to the other side of the Atlantic remained at $ 13-14 K/ day and in Asia at $ 15.5-16.5 K/ day.
ECSA’s market recorded new losses, despite the fact that supplied capacity is downward. Given that, rates of the bigger vessels from ECSA area regarding transatlantic trips (Mediterranean-Continent) moved between $ 25.5-26.5 K/ day and to Asia at $ 27-28.5 K/ day.
In Asia, the overall image was negative, while new cargoes were missing from the area as much in the South as in the North. In the Middle East’s Gulf and W. C. India the image was similar, while there the options of owners were limited as well and only some cargoes fro the Atlantic Basin presented interest. 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 S. E. Asia to China at $ 21-22.5 K/ day and from W. C. India to China at $ 20.5-21.5 K/ day.

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