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More specifically, Capes rose by 8.7%, Kamsarmaxes -6.92%, Supramaxes -0.9% and Handies -1.2%, compared to the previous week. Thus, the BDI rose by 52 credits compared to the previous week and closed at 1814 cred on Friday, August 30.
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 downtrends despite the fact that there was plenty of activity. However, then there was a rise in rates after the three biggest miners were in the market. Index levels on the Australia-China route (C5) closed on Friday at $11.30/tn.
Optimism prevailed in the North Atlantic, but it was not commensurate with the levels at which various closures occurred. But the dynamic course of Brazil and West Africa favored the whole basin. Indexes on Friday for trips from Brazil to China reached up to $28/tn (for the C3 route), while Continet-to-Asia rates closed at $52.94K/d (for the C9 route) and Transatlantic round trips at $19.78K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north we observed another “slow” week as most charterers used their own vessels for their cargoes. There have been some East Coast and Gulf shipments but not enough to support the market. In the south there was more stability with less casualties. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $14.5-16.5K/day (Asia delivery), Continent to Asia at $21.5-23.5K/day (Continent delivery) and Transatlantic round trips at $8-10K/day (Gibraltar delivery).
On the other hand, in Asia there have been pressures due to increased concentration of capacity led to a drop in rates with charterers taking advantage of their position to throw their ideas further. The end of the week was calm but the appearance of some cargoes left a tone of optimism for the week ahead. Indonesia-Far East round trip rates moved to $10.5-12.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market moved at the same or even slightly lower levels. At the beginning of the week there were some closures but then the activity slowed down. 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 was flat due to improved demand for cargoes to W. C. India and the North Pacific. SMXs rates for North Pacific (NOPAC) round trips moved to $11-12.5K/day, W. C. 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 showed signs of fatigue with a reduced volume of closures and an increase in the number of vessels available. SMXs rates for Far East trips ranged between 3-14.5K/day (from Middle’s East Gulf (MEG) – West C India (WCI)), for short-haul trips between Middle’s East Gulf – West C. India at $11.5-13 K/day and trips to the Atlantic Basin at $ 8-9.5 K/day.
The Atlantic Basin and especially the US Gulf got off to a strong start last week with the cargo list improving and ship-owners ramping up their ideas. However, towards the end of the week loads decreased and rates stabilized. SMXs rates for Transatlantic trips reached up to $18.5-20K/day and to Asia $24.5-26K/day. The ECSA region was quiet for another week with little new loads and capacity build-up. It is worth noting that the north presented a better picture. The rates of SMXs for trips to the S. E. Asia-China moved to $22.5-24K/day and for Transatlantic trips (Mediterranean/Continent) to $17.5-19K/day.

Continent continued to move at the same low speeds as cargo flow was sluggish. Still the ship-owners stuck to their ideas hoping that September will be better. SMX rates for round-trip local trips moved to $12.5-14K/day, for trips with SCRAP cargoes to the Mediterranean at $12.5-14K/day and to Asia at $18.5-20K/ day. The Mediterranean continued to decline due to extremely limited demand and activity. Thus, the number of bookings was at lower levels than the previous week. For example, 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 Basin at $8.5-10K/day and within the Mediterranean at $ 9.5-11K/day (outside war zones).

In the Handies market, in Continenthe market showed more movement with several vessels’ owners rushing to book their next trip. Thus, the list of available vessels was limited. 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 $8.5-10K/day day.

The Mediterranean was under pressure from an oversupply of vessels and a shortage of cargo. Charterers took a wait-and-see attitude trying to take advantage of this situation. Larger vessel rates (over 36K tonnes DWT) for intra-Med voyages moved to $9.5-11K/day (delivery at Canakkale), to Continent at $8.5-10K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $8-9.5K/day (delivery to Canakkale) and to Asia at $13.5-15K/day.

On the other side of the Atlantic Basin in the US Gulf the market started the week with some new cargoes giving the trigger for higher rates. However, in the last few days the list of loads was not renewed, resulting in the market stabilizing. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between $16.5-18K/day and to Asia at $21-22.5K/day.

The East Coast of South America (ECSA) region declined significantly despite the fact that the volume of closures increased. Once again, the south performed better than the north in terms of demand. But moving vessels from the north pressed the south. 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 week was subdued with limited new cargoes and increasing capacity supply, both north and south. Further west, the Middle East and West Indian Gulf market managed to advance without particular changes as there was a relative balance between supply and demand. Far East and NOPAC round trip charters on larger vessels closed at $13.5-15K/day, from N.A. Asia to China at $11.5-13K/day and from the West India to China at $10.5-12K/day.

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