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The dry bulk cargo market moved positively, compared to the previous week, thanks to Capes for another week which was the only sector to move upwards, while the smaller sizes showed small losses. More specifically, Capes rose by 8.3%, Kamsarmaxes -1.67%, Ultramaxes(63) -3.23% and Handies -2.65%, compared to the previous week. Thus, the BDI rose by 127 credits ared to the previous week and closed at 1941 credits on Friday, September 6.
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 was particularly active as 2 of the 3 main charterers had cargoes. In the 2nd half of the week the rates dropped but the upward trends were maintained. It should be noted that various operational problems in southern China ports were observed by typhoon Yagi. Index levels on the Australia-China route (C5) closed on Friday at $11.89/tn.
The Atlantic Basin could be said to have moved at two speeds. On the one hand Brazil was sluggish and on the other, the North Atlantic Basin which strengthened with more transatlantic trips. But the overall picture was positive in both areas. Indexes on Friday for trips from Brazil to China reached up to $27.63/tn (for route C3), while rates from Continent to Asia closed at $57.06K/d (for route C9 ) and Transatlantic round trips at $23.71K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic basin there was more activity both in the north and in the south. However, with the closure of existing cargoes for the 1st half of September, the market is expected to decline significantly since the cargo list has not been renewed. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $12.5-14.5K/day (Asia delivery), Continent to Asia at $20.5-22.5K/day (Continent delivery) and Transatlantic round trips at $6.5-8.5K/day (Gibraltar delivery).
On the other hand, in Asia the market strengthened with some new cargoes after a “dry” period. Naturally the appearance of new cargoes from the North Pacific, Australia and Indonesia was accompanied by an increase in the volume of closures. At the end of the week the rates fell but there is optimism that next week the market will continue upwards. Indonesia-Far East round trip rates ranged from $9.5-11.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market started the week at low speeds. But in the middle of the week, we saw more shipments from Indonesia to China. 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 progressed without particular changes despite the few open vessels in the market. It is worth noting that routes through the Gulf of Aden paid a premium. SMXs rates for North Pacific (NOPAC) round trips moved to $12.5-14K/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 moved up and down the same levels as compared to the previous week. SMXs rates for Far East trips ranged between 4.5-16K/day (from Middle’s East Gulf 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.
In the Atlantic Basin and especially the American Gulf continued the downward trend from the previous week. However mid-week saw some cargo in the Caribbean and across the Atlantic Basin. SMXs rates for Transatlantic trips reached up to $17.5-19K/day and to Asia $22.5-24K/day. The ECSA region showed downward trends since demand was not enriched with new cargoes while the number of available vessels increased mainly for the 2nd half of September. The rares 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 had another quiet week as demand did not renew while several shipowners agreed to close some cargo at significantly lower numbers than the previous week. SMXs rates for circular-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 show reduced demand despite being in the middle of the grain season. On the other hand in the western Mediterranean there was a steady flow of cargo. For example, it is reported that an SMX for a trip from the Mediterranean to Asia was closed at $17.5-19K/day (Canakkale delivery), to the other side of the Atlantic Basin at $6.5-8K/day and within the Mediterranean at $ 9-10.5K/day (outside war zones).
In the Handies market, in Continent the market was quiet as cargoes from both northern Continent and the Baltic were absent. Most boat owners hope that this picture will change soon but there are no such signs. Rates for the largest vessels in the class, for round trips reached up to $9.5-11K/day, to the Mediterranean with scrap cargoes at $11-12.5K/day and for Transatlantic trips at $8.5-10K/day day.
The Mediterranean presented a similar picture to northern Continent as activity was sluggish and with limited volumes of grain cargoes from Russia and Ukraine. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips 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 $6.5-8K/day (delivery to Canakkale) and to Asia at $13.5-15K/day.
On the other side of the Atlantic Basin, in the American Gulf the market came under pressure with rates remaining at the same levels or even falling as the volume of cargo could not absorb the increasing number of vessel. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between 5-16.5K/day and to Asia at $19.5-21K/day.
The East Coast region of South America (ECSA) advanced with a further decline despite the fact that demand strengthened. But the oversupply of vessels did not allow for climate change. Several shipowners preferred to wait, hoping for a rise in rates. 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 $17.5-19K/day.
In Asia both in the south and in the north the list of cargoes was extremely limited and as a result the rates fell. A positive point was the fact that the number of available vessels did not increase. Further west, in the Gulf of the Middle East and W. C. India there have been several talks of tenders but actual cargoes on the market have been few. Far East and NOPAC round trip charters on larger vessels closed at $13.5-15K/day, from S. E. Asia to China at $11.5-13K/day and from the West C. 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