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The dry bulk cargo market declined, compared to the previous week, with Capes dropping the general index while the rest of the sizes showed marginal gains. More specifically, Capes fell by 9.8%, Kamsarmaxes -2.13%, Supramaxes +0.74% and Handies +1.5%, compared to the previous week. Thus, the BDI fell by 95 credits, compared to the previous week, and closed at 1902 credits on Friday, July 19.
Let's see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. In Asia an increase in coal cargoes towards the end of the week from Australia to China gave shipowners confidence to increase their ideas. Index levels on the Australia-China route (C5) closed on Friday at $9.73/tn.
In the Atlantic Basin the market moved at two speeds. More pressure was seen in the north in contrast to the south, where Brazil was particularly active for August loadings. Indexes on Friday for trips from Brazil to China reached up to $26.05/tn (for route C3), while rates from Continent to Asia closed at $55.19K/d (for route C9) and Transatlantic round trips at $25.75K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic basin and especially in the north the lack of cargoes for both transatlantic and Asiatic trips was evident. In the south there was more movement but rates remained flat for loadings in the 1st half of August. For example, the rates for the trips from the E. Coast of S. Americas (ECSA) to the Far East reached up to $17-19K/day (Asia delivery), Continent to Asia at $26-28K/day (Continent delivery) and transatlantic round trips at $13.5 -15.5 K/day (delivery to Gibraltar).
On the other hand, in Asia we saw more action with quite a few cargoes from the North Pacific as well as Australia. Also, bad weather conditions caused many operational problems in China's ports. Indonesia-Far East round trip rates moved to $13.5-15.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market got off to a hot start as there were more loads. However, as the week went on, the loads decreased, dropping the rates as well. 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 came under pressure from increasing vessel tonnage and the North Pacific moved low. SMXs rates for North Pacific (NOPAC) round trips moved to $11.5-13K/day, W. C. India round trips to $10-11.5K/day and Atlantic (BH) round trips to $ 11.5-13K/day.
In the Middle East Gulf and West C. India the market showed improvements due to the increase in demand. SMXs rates for Far East trips ranged between $14.5-16K/day (from Middle East’s Gulf (MEG) – West C. Indies (WCI)), for short-haul trips between Middle East’s Gulf – West C. India at $13.5-15 K/day and trips to the Atlantic at $10-11.5 K/day.
The Atlantic Basin and especially the American Gulf showed improvements in travel to the other side of the Atlantic Basin. Most vessels moving to the region preferred trips to Asia so rates on these routes did not increase. SMXs rates for transatlantic trips reached up to $25.5-27K/day and to Asia $23.5-25K/day. The ECSA area lost ground due to the lack of new requirements while the number of available vessels increased. In addition, there was competition from the larger vessels, Panamaxes. SMXs rates for trips to the S. E. Asia-China moved to $23.5-25K/day and for Transatlantic trips (Mediterranean/Continent) to $17.5-19K/day.
Continent showed activity in the 1st half of the week with shipowners negotiating the few remaining scrap cargoes. After these were covered the market showed a big drop due to the lack of loads. SMX rates for round-trip local trips moved to $14.5-16K/day, for trips with SCRAP cargoes to the Mediterranean at $14-15.5K/day and to Asia at $20.5-22K/ day. The Mediterranean moved lower as the flow of cargoes could not cover the capacity offered. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $21-22.5K/day (Canakkale delivery), to the other side of the Atlantic at $9.5-11K/day and into the Mediterranean at $ 11.5-13K/day (outside war zones).
In the Handies market, in Continent the market continued its downward trend. A positive point is the fact that several vessels are moving to other areas leaving a sense of optimism that the market will soon stabilize. 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 $9.5-11K/day and for transatlantic trips at $8-9.5K /day.
The Mediterranean remained calm and it was only towards the end of the week that some closures occurred. Particularly interesting were trips mainly from Russia to Egypt and Algeria. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $10.5-12K/day (delivery at Canakkale), to Continent at $9.5-11K/day (delivery to Canakkale), to the other side of the Atlantic Basin at $8.5-10K/day (delivery to Canakkale) and to Asia at $14-15.5K/day.
On the other side of the Atlantic Basin, the US Gulf market rallied as shipowners remained steadfast in their ideas, despite the fact that the number of vessels in the region remains high and most cargoes for July have been filled. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between 7.5-19K/day and to Asia at $21.5-23K/day.
The East Coast of South America (ECSA) began the week without much action as both shipowners and charterers appeared reluctant to proceed with any closures. This changed mainly in the 2nd half of the week where there were more closes while the market was also helped by the rise of the West Coast of Latin America. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $17-18.5K/day and to Asia at $20.5-22K/day.
In Asia and particularly in the south the market was supported by cargoes from south-east Asia as Australia was quiet. In the north, interest centered around cargoes to the Atlantic Basin, since most shipowners preferred to remain in the region, resulting in increased rates on those routes. Further west, all the action was seen in the Middle East Gulf as W. C. India moved low. Far East and NOPAC round trip charters on larger vessels closed at $13-14.5K/day, from S.E. Asia to China at $15.5-17K/day and from the West C. India to China at $12-13.5K/day.

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