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The dry bulk cargo market was marginally down on the previous week, with Capes and Handies dropping the overall index. However, Panamaxes and Ultramaxes were up, with the former posting a double-digit difference. More specifically, Capes fell by 8%, Kamsarmaxes +10.35%, Ultramaxes(63) +0.31% and Handies -2.35%, compared to the previous week. Thus, the BDI fell by 51 credits compared to the previous week and closed at 1890 credits on Friday, September 13.
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 strongly with limited closing volume, but not at higher levels. Subsequently, the volume of cargoes decreased, with the result that the rates on the main lines also decreased. However, at the end of the week we saw the market recover. However, 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.
In the Atlantic Basin, the market showed downward trends with the biggest losses occurring in the north and mainly in transatlantic trips. In Brazil the picture was a little better with the weekly losses being marginal reaching just 3%. Indexes on Friday for trips from Brazil to China reached up to $27/tn (for route C3), while rates from Continent to Asia closed at $54.19K/d (for route C9) and transatlantic round trips at $19.43K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic Basin the market showed a lot of activity with improved demand for transports while several vessels found some employment. The ECSA region, the American Gulf and the Black Sea stood out. 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 $21-23K/day (Continent delivery) and transatlantic round trips in $8.5-10.5K/day (Gibraltar delivery).
On the other hand, Asia saw improvements both north and south thanks to a steady flow of cargo from the North Pacific and Indonesia. Indonesia-Far East round trip rates moved to $12-14K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market started the week calm but mid-week cargoes increased and the number of vessels was reduced pushing up the rates. SMXs rates for travel between S. E.. Asia and the Far East went to 17.5-19K/day. Further north, the Far East market saw more cargo from the North Pacific but this was not enough to improve rates levels. SMXs rates for North Pacific (NOPAC) round trips moved to $13-14.5K/day, W. C. India round trips to $14-15.5K/day and Atlantic Basin (BH) round trips to $ 13.5-15K/day.
In the Middle East Gulf and West C. India the market showed slight improvements with a slight increase in cargo flow and closures. SMXs rates for Far East trips ranged between $15.5-17K/day (from Middle’s East Gulf (MEG) – West C. Indies (WCI)), for short-haul trips between Middle’s East Gulf – West C. Indies at $13.5-15 K/day and trips to the Atlantic Basin at $ 9-10.5 K/day.
In the Atlantic Basin and especially the US Gulf was affected by the problems and delays created by Hurricane Francine. However the cargo list gradually increased leaving a feeling for market improvement next week. SMXs rates for Transatlantic trips reached up to $21.5-23K/day and to Asia $25.5-27K/day. The ECSA region started the week quietly with limited cargo volumes. However, as the days passed demand improved with some cargoes to Asia and the other side of the Atlantic Basin, resulting in stable rates. 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 $18-19.5K/day.
Continent showed more stability after the positive climate change and the appearance of some loads. SMX rates for round-trip local trips moved to $13.5-15K/day, for trips with SCRAP cargoes to the Mediterranean at $13-14.5K/day and to Asia at $18.5-20K/ day. The Mediterranean showed a lot of mobility with many bookings mainly for the western side, since in the east the absence of grain from the Black Sea was evident. 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 $9-10.5K/day and into the Mediterranean at $ 9.5-11Κ/dat (outside war zone).
In the Handies market, in Continent the market moved positively with more activity and some scrap cargoes boosting demand. However, this improvement in the climate concerned the largest vessels in the sector as the competition was intense in the smaller ones. Rates for the largest vessels in the class, for round trips reached up to $9-10.5K/day, to the Mediterranean with scrap cargoes at $12.5-14K/day and for transatlantic trips at $7.5-9K/day day.
The Mediterranean continued to see plenty of traffic from Ukrainian ports as grain exports continue. But the oversupply of vessels did not leave much room for an increase in rates. Larger vessel rates (above 36K tonnes DWT) for intra-Med trips moved to $8.5-10K/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 moved under the pressure of the hurricane which caused operational problems in the ports and kept several vessels tied up. 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 $20.5-21K/day.
The East Coast of South America (ECSA) region has been under pressure from the increased number of vessels readily available resulting in the charter market losing ground. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent– Mediterranean) moved to $14.5-16K/day and to Asia at $16.5-18K/day.
In Asia and particularly in the north the market strengthened with more cargo from the North Pacific while in the south there was a balance between supply and demand. Further west in the Gulf Middle East and W. C. India there was more talk of some tenders with steel cargoes which helped rates to remain flat. Far East and NOPAC round trip larger class vessels closed at $14.5-16K/day, from S. E. Asia to China at $11.5-13K/day and from the West C. India to China at $10-11.5K/day.

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