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The dry bulk cargo market appeared to be back in action as the various sizes closed the week with either gains (Panamaxes and Supramaxes) or marginal losses (Capes and Handies) over the week. However, all changes were in single digits. More specifically, Capes rose by -1.37%, Kamsarmaxes +11.4%, Supramaxes +6.5% and Handies -0.39%, compared to the previous week. Thus, the BDI rose by 67 credits compared to the previous week and closed at 1948 credits on Friday, June 14.
Let’s see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. In Asia the market fell as coal shipments from Australia and Indonesia were limited. So, the central Australia-China route moved to lower levels. Index levels on the Australia-China route (C5) closed on Friday at $10.62/tn.
In the Atlantic Basin and especially in the south, the week started very positively with fewer vessels moving in the region and steady demand. But the continuation was not similar since the bad image of the Pacific led many vessels owners to move to the west. The north continued to show a good volume of cargo. Indexes on Friday for voyages from Brazil to China reached $26.79/tn (for route C3), while freight rates from Europe to trips closed at $49.13K/d (for route C9 ) and Transatlantic round trips at $21.46K/day (for route C8).
Regarding Kamsarmaxes, the Atlantic basin saw an increase in demand both north and south, led by grain cargoes for the 1st half of July. Grain cargoes on transatlantic trips made particular gains. For example, the rates for the trips from the E. Coast of S. Americas (ECSA) to the Far East reached up to $20.5-22.5K/day (Asia delivery), Continent to Asia at $27-29K/day (Continent delivery) and transatlantic round trips in $14.5-16.5K/day (Gibraltar delivery).
On the other hand, in Asia the week started quietly due to the holidays and continued at the same pace in terms of activity during the rest of the week. Thus, many vessels were transported to the Atlantic. Indonesia-Far East round trip rates moved to $14-16K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market progressed at slow speeds. Demand from Indonesia was limited, while there was plenty of movement on the supply side after returning from the holiday on Monday. SMXs rates for travel between S. E. Asia and the Far East went to 15.5-17K/day. Further north, in the Far East the market moved thanks to steel exports from China. Additionally, several vessels that did not wish to engage in this trade moved further south. SMXs rates for North Pacific (NOPAC) round trips moved to $12-13.5K/day, W. C. India round trips to $12.5-14K/day and Atlantic (BH) round trips to $ 12.5-14K/day.
In the Gulf of the Middle East and the West C. India the market was calm so the rates fell while many vessels’ owners tried to find some work in order to move to the Atlantic. SMX rates for Far East trips ranged from $14.5-16K/day (from Middle East’s Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle East’s Gulf – West C. India at $13-14.5 K/day and trips to the Atlantic Basin at $ 6.5-8 K/day.
In the Atlantic Basin and especially the American Gulf showed an increase after a period of pressure. So at the end of the week, we saw rates go up due to the appearance of new cargoes with immediate loading dates. SMXs rates for Transatlantic trips reached up to $17.5-19K/day and to Asia $24.5-26K/day. The ECSA region continued to move upwards as demand remained strong for both transatlantic and Asian travel. In addition, supplied capacity was limited. Only at the end of the week did we see this rise limited. SMXs rates for trips to the S. E. Asia-China moved to $27-28.5K/day and for Transatlantic trips (Mediterranean/Continent) to $23.5-25K/day.
Continent strengthened with some new cargoes but this was not enough to reverse the market’s downward trend. In addition, the supply and demand relationship remained in favor of charterers. SMXs rates for round-trip local trips moved to $10.5-12K/day, for trips with SCRAP cargoes to the Mediterranean at $11.5-13K/day and to Asia at $18.5-20K/ day. The Mediterranean was helped by improved demand but also the movement of vessels to the other side of the Atlantic Basin where they could find higher rates. However, supplied capacity remained at high levels but rates followed the upward trends of the Atlantic Basin. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $16.5-18K/day (Canakkale delivery), to the other side of the Atlantic Basin at $8-9.5K/day and within the Mediterranean at $ 9.5-11 K/day (outside war zones).
In the Handies market, in Continent the market was strengthened by several new cargoes but also by the limited supply of vessels. They singled out the cargoes to West Africa which also paid a premium. Rates for the largest vessels in the class, for round trips reached up to $8.5-10K/day, to the Mediterranean with scrap cargoes at $10-11.5K/day and for transatlantic trips at $8.5-10K /day.
The Mediterranean was influenced by the wider positive climate of the Atlantic Basin while the cargo flow was also stable. Larger vessel rates (over 36K tonnes DWT) for intra-Med trips moved to $8-9.5K/day (delivery at Canakkale), to Continent at $8.5-10K/day (delivery to Canakkale), to the other side of the Atlantic Basin at $7.5-9K/day (delivery to Canakkale) and to Asia at $13-14.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market started off numb and it is with an increased number of vessels in the area. However, the sequel was more active with several new cargoes thus raising rate levels. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged from $13.5-15K/day and to Asia at $16-17.5K/day.
The East Coast of South America (ECSA) region is back in action especially after the 2nd half of the week. So, we saw an increase in demand, which, however, was not reflected in the rates. It is also worth noting that the difference between north and south has narrowed, seeing similar numbers in both regions. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $16.5-18K/day and to Asia at $17.5-19K/day.
In Asia the market saw losses due to the lack of cargoes from both the north and the south. Calm prevailed in Indonesia, Australia and China, with the result that rates fell. The picture was similar in the West C. India nd the Gulf of the Middle East. However, rates remained at the same levels. Far East and NOPAC round trip charterers on larger vessels closed at $12-13.5K/day, from S. E. Asia to China at $15.5-17K/day and from the West C. India to China at $11.5-13K/day.

Disclaimer
This report and the information contained herein it is for general information only and does not constitute an investment advice