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The dry bulk cargo market show slight losses compared to the previous week, with all sizes recording single-digit declines. More specifically, Capes fell by 3%, Kamsarmaxes -7.27%, Supramaxes -3.63% and Handies -2.7%, compared to the previous week. Thus, the BDI fell by 84 credits compared to the previous week and closed at 1966 credits on Friday, July 5.
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 week started with strong activity with the main charterers active. But at the end of the week rates dropped and capacity began to increase. Index levels on the Australia-China route (C5) closed on Friday at $10.28/tn.
In the Atlantic Basin the market moved at two speeds. On the one hand we saw higher figures for shipments from Brazil and West Africa during July and lower figures for August shipments. Indexes on Friday for trips from Brazil to China reached up to to $28.51/tn (for route C3), while rates from Continent to Asia closed at $59.68K/d (for route C9 ) and Transatlantic round trips at $27.71K/day (for route C8).
Regarding Kamsarmaxes, losses were recorded in the Atlantic Basin basin due to limited demand mainly in the north. In addition, shipowners preferred to wait for a potential increase rather than close at lower numbers. In the south the picture was better, however, and there a decline was recorded, but on a smaller scale. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $13.5-15.5K/day (Asia delivery), Continent to Asia at $23-25K/day (Continent delivery) and transatlantic round trips in $10-12K/day (delivery to Gibraltar).
On the other hand, Asia was generally quiet on all routes and it was only midweek that saw some activity on the Australia-China route. Still Latin America pays better round trip rates and a number of shipowners are turning their attention there. Indonesia-Far East round trip rates ranged between $11.5-13.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market lost ground due to the lack of new cargoes from Indonesia. Thus the competition intensified between the shipowners who were forced to give in to their ideas. SMXs rates for trips between S.E. Asia and the Far East went to 15.5-17K/day. Further north in the Far East the market moved lower as it was affected by the south despite steel exports continuing at the same pace11-12.5 rates for North Pacific (NOPAC) round trips moved to $11.5-13K/day, W. C. India round trips to $11-12.5K/day and Atlantic (BH) round trips to $ 12.5-14K/day.
In the Middle East Gulf and West C. India the market was broadly flat as despite reduced activity shipowners preferred to hold their positions and not close lower. SMXs rates for Far East trips ranged between $15-16.5K/day (from Middle East’s Gulf (MEG) – West C. Indies (WCI)), for short-haul trips between Middle East’s Gulf – West C. India at $12.5-14 K/day and trips to the Atlantic Basin at $8.5-10 K/day.
In the Atlantic Basin and especially the American Gulf moved upwards, with a steady flow of cargo mainly to Asia. There is optimism that next week we will see another rise in the market. SMXs rates for Transatlantic trips reached up to $19-20.5K/day and to Asia $24.5-26K/day. The ECSA region progressed during the week calmly, without any particular surprises. A decrease in ssupplied capacity was observed however this was not enough to improve rates. The rates of SMXs for trips to the S.E. Asia-China moved to $23.5-25K/day and for Transatlantic trips (Mediterranean/Continent) to $18.5-20K/day.
Continent showed improvements as demand started to pick up. SMX rates for round-trip local trips moved to $13.5-15K/day, for trips with SCRAP cargoes to the Mediterranean at $12-13.5K/day and to Asia at $19-20.5K/ day. The Mediterranean saw an increase in activity at the end of the week for cargoes related to the second half of July, however. Thus, the pressures are expected to continue until the available vessels in the region are absorbed. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $19-20.5K/day (Canakkale delivery), to the other side of the Atlantic at $9-10.5K/day and within the Mediterranean at $ 11.5-13K/day (outside war zones).
In the Handies market, in Continent the market continued its downward trend. However, a positive point is the fact that the number of vessels in the area has started to decrease. Rates for the largest vessels in the class, for round trips reached up to $10-11.5K/day, to the Mediterranean with scrap cargoes at $10.5-12K/day and for Transatlantic trips at $9-10.5K /day.
The Mediterranean declined due to cargo shortages and increasing capacity supply. Larger vessels rates (over 36K tonnes DWT) for intra-Med voyages moved to $12-13.5K/day (delivery at Canakkale), to Continent at $12.5-14K/day (delivery to Canakkale), to the other side of the Atlantic Basin at $10-11.5K/day (delivery to Canakkale) and to Asia at $15-16.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market started the week with a lot of activity but the break for the independence day threw off the pace. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between $15-16.5K/day and to Asia at $20-21.5K/day.
The East Coast of South America (ECSA) region recorded losses although there was a relative balance between supply and demand in both the north and the south. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips(Continent – Mediterranean) moved to $15.5-17K/day and to Asia at $18-19.5K/day.
In Asia and particularly in the south the market was kept at the same levels thanks to the steady flow of cargo from Australia. In the north, steel exports to the Atlantic attracted the most interest. Further west, in W. C. India, the monsoons caused serious operational problems in the ports while also reducing the activity of the region. Far East and NOPAC round trip charterers on larger vessels closed at $14-15.5K/day, from S.E. Asia to China at $17.5-19K/day and from the West C. India to China at $11.—13K/day.

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