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The dry bulk cargo market continued to decline as all larger sizes declined except Supramaxes. Capes and Panamaxes saw a double-digit drop, while Handies showed marginal losses. On the contrary, Supramaxes showed a small increase compared to the previous week. More specifically, Capes fell by 12.87%, Kamsarmaxes +15.6%, Supramaxes +1.95% and Handies -2.25%, compared to the previous week. Thus, the BDI fell by 112 credits (compared to the previous week) and closed at 978 credits on Friday, July 21.
Let's see, in more detail, how the dry bulk cargo market by vessels size moved last week, starting with CAPEs. In Asia, the week passed without much activity. Two of the three main charterers may have been in the market but cargo volumes were limited. Only towards the end of the week did we see some positive corrections. Index levels on the Australia-China route (C5) closed Friday at $7.67/tn.
In the Atlantic Basin the market started the week with a lot of energy, mainly in Brazil and West Africa. But towards the end of the week the rates fell and a balance prevailed in the market. Indexes on Friday reached Brazil to China trips at $19.12/tn (for C3 route), while Continent to Asia rates closed at $30.1K/d (for C9 route) and Transatlantic round trips at $11.66K/d (for C8 route).
Regarding Kamsarmaxes, in the Atlantic the rates fell. With the Black Sea at a standstill due to the failure to agree on a grain corridor from Ukraine, many vessels will be moved further west, burdening other regions with extra capacity. For example, the rates for the trips from the E. Coast S. America (ECSA) to the Far East reached up to $21-23K/day ( E. S. delivery), Continent to Asia at $15.5-17.5K/day (Continent delivery) and transatlantic round trips at $5.5-7.5K/day (Gibraltar delivery).
On the other hand, in Asia the market was losing ground day by day as demand was limited. Only in the North Pacific and Australia were there some cargoes that were not enough to support the market. Indonesia-Far East round trip rates moved to $7-9K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia coal cargoes from Indonesia and some cargoes from Australia kept the market on the uptrend. SMXs rates for travel between S. E. Asia and the Far East stayed at 10.5-12K/day. Further north, in the Far East the market was calm and as a result rates fell. SMXs round trip NOPAC rates ranged $6-7.5K/day W. C. India round trips $5.5-7K/day and Atlantic Basin(BH) round trips $5-6.5K/day.
In the Middle East Gulf and West C. India the market lost ground mainly to cargoes from the Gulf. In contrast on the West Coast of India it was more balanced. SMXs rates for Far East trips ranged from $7-8.5K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short-haul Gulf–West C India at $6.5-8K/day, and Atlantic trips at $4.5-6K/day.
In the Atlantic Basin and especially the American Gulf saw improvements with several cargoes both to the other side of the Atlantic and to Asia. SMX rates for Transatlantic trips remained at $11-12.5K/day and to Asia at $14-15.5K/day. The ECSA area moved lower. Although the number of vessels available remained limited, the volume of cargo was not enough to improve the overall picture. The rates of SMXs for vessels to S. E. Asia-China moved to $13-14.5K/day and for Transatlantic trips (Mediterranean/Continent) to $9.5-11K/day.
In Continent the climate has changed thanks to the appearance of new trucks on the market and the reduction in the number of vessels. SMXs rates for circular-local trips moved to $9-10.5K/day, for trips with SCRAP cargoes to the Mediterranean at $9-10.5K/day and to Asia at $11-12.5K/day. The Mediterranean progressed without any particular surprises with capacity supply remaining stable and demand slightly down. We saw some cargoes of grain from the black sea but the cargoes of minerals were missing. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $10-11.5K/day (Canakkale delivery), to the other side of the Atlantic at $6-7.5K/day and into the Mediterranean at $6-7.5K/day (outside war zones).
In the Handies market, in Continent the market maintained its momentum with satisfactory cargo flow to all routes. Fares for the largest vessels in the class, for round trips reached $7.5-9K/day, to the Mediterranean with Scrap cargoes at $8-9.5K/day and for Transatlantic trips at $6.5-8K/day.
The Mediterranean was kept at the same levels, but the impossibility of an agreement on Ukrainian grain has created nervousness in the market. Larger vessel rates (over 36K DWT) for intra-Med trips moved to $6.5-8K/day (delivery Canakkale), Continent $7-8.5K/day (delivery Canakkale), transatlantic $6-7.5K/day (delivery Canakkale) and Asia $9.5-11K/day.
On the other side of the Atlantic Basin, in the US Gulf the market showed some signs of improvement, thanks to transatlantic cargoes, with shipowners asking for increased rates to go to the Mediterranean. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $6.5-8K/day and to Asia at $8.5-10K/day.
In the East Coast of South America (ECSA) the market fell further as capacity was boosted by vessels moving from the other Atlantic regions, while cargoes were not enough to cover the oversupply. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $9.5-11K/day and to Asia at $11.5-13K/day.
In Asia the north came under pressure and only southbound rates and Atlantic trips managed to remain unchanged from the previous week. In the Middle East Gulf and West C India, rates continued to fall with limited demand. Far East and NOPAC round trip charterers on larger vessels closed at $6.5-8K/day, from S. E. Asia to China at $7.5-9K/day and from the West India to China at $6-7.5K/day.