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The dry bulk cargo market declined, compared to the previous week, after the largest sizes recorded losses and especially the Capes, whose weekly decline was double-digit. It is worth noting that the general index of Handies remained at the same levels. More specifically, Capes fell by 10.97%, Kamsarmaxes -4.85%, Supramaxes -3.15% and Handies -0.02%, compared to the previous week. Thus, the BDI fell by 133 credits compared to the previous week and closed at 1675 credits on Friday, August 2.
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 increased number of vessels cut off any possibility of a rise in rates. Many ship-owners, seeing that the Atlantic Basin does not offer some attractive alternatives, preferred to stay in the area further pushing the market. Only at the end of the week did the situation improve. Index levels on the Australia-China route (C5) closed on Friday at $9.82/tn.
In the Atlantic Basin, Brazil was particularly active absorbing much of the capacity for mid-August. In contrast, the north had little flow of cargo and moved at low speeds. Indexes on Friday for trips from Brazil to China reached up to $23.62/tn (for route C3), while rates from Continent to Asia closed at $45.72K/d (for route C9 ) and Transatlantic round trips at $14.86K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin the week started with bearish trends, however mid-week we saw more loads mainly to the other side of the Atlantic Basin. In the south the increased number of moving vessels from Asia increased competition between ship-owners. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $33.5-35.5K/day (ECSA delivery), from Continent to Asia at $26.5-28.5K/day (Continent delivery) and Transatlantic round trips at $14-16K/day (Gibraltar delivery).
On the other hand, ship-owners appeared to be moving closer to charterers' ideas to close as cargoes were tight despite activity in the North Pacific, Australia and Indonesia. Indonesia-Far East round trip rates moved to $14-16K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market declined due to the lack of new cargoes from Indonesia and Australia. SMXs rates for travel between S.E. Asia and the Far East went to 14.5-16K/day. Further north, in the Far East the market fell as Atlantic cargoes moved lower, while China and the North Pacific did not offer much support. SMXs rates for North Pacific (NOPAC) round trips moved to $11-12.5K/day, India round trips to $12-13.5K/day and Atlantic Basin (BH) round trips to $ 11.5-13K/day.
In the Middle East Gulf and West C. India the market came under pressure as there was not much movement. SMX rates for Far East trips ranged between $13.5-15K/day (from Middle East’s Gulf (MEG) – West C. India (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 $ 9.5-11 K/day.
In the Atlantic Basin and especially the American declined due to the pressures of the increase in the offered capacity moving from the other side of the Atlantic Basin. SMXs rates for Transatlantic trips reached up to $20-21.5K/day and to Asia $22.5-24K/day. The ECSA area did not see any particular changes since there was a lack of cargo and vessels for the near dates. On the contrary, the cargo flow is better for the second half of August, but the vessels moving from West Africa are also expected to increase. The rates of SMXs for trips totripsE. C. Asia-China moved to $23.5-25K/day and for Transatlantic trips (Mediterranean/Continent) to $17-18.5K/day.
Continent was quiet with limited demand and even fewer closures. Most shipowners considered the option of moving to Brazil. SMX rates for round-trip local trips moved to $13-14.5K/day, for trips with SCRAP cargoes to the Mediterranean at $13.5-15K/day and to Asia at $19.5-21K/ day. The Mediterranean showed signs of recovery with increased demand despite small numbers of grain cargoes from the Black Sea. 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 Basin 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 lost ground after following the wider trend of larger vessels. Also some vessels booked cargoes with several days of waiting to load. 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 $11.5-13K/day and for Transatlantic trips at $7.5-9K/day day.
The Mediterranean saw another drop after no particular action was observed. In addition, open vessels far outnumbered new cargoes, adding pressure to rates. Larger vessel rates (above 36K tonnes DWT) for intra-Med trips moved to $9.5-11K/day (delivery at Canakkale), to Continent at $9.5-11K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $9-10.5K/day (delivery to Canakkale) and to Asia at $13-14.5K/day.
On the other side of the Atlantic Basin, in the American Gulf the market remained at the same levels. There may have been more cargo through the Gulf and East Coast but the increase in the number of vessels did not allow for a rise in rates. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between 5.5-17K/day and to Asia at $20.5-22K/day.
The East Coast of South America (ECSA) region appeared to have peaked last week after this week saw rates decline. It should be noted that there was also competition from the larger vessels, Supramaxes. 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 $19.5-21K/day.
In Asia the market showed marginal losses compared to the previous week both in the north and in the south. A lack of new cargoes in Indonesia and the North Pacific left no room for growth despite any support from Australia. Further west, we saw further depression with the monsoons preventing the market from functioning smoothly. Far East and NOPAC round trip charters on larger vessels closed at $13-14.5K/day, from S. E. Asia to China at $13.5-15K/day and from the West C. India to China at $11-12.5K/day.

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