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The dry bulk cargo market closed the Poseidon week with a positive sign. The larger sizes, Capes and Panamaxes, advanced, and with marginal losses the smaller sizes Supramaxes and Handies. However, all changes were in single digits. More specifically, Capes rose by 6.3%, Kamsarmaxes +3.37%, Supramaxes -1.9% credits and Handies -0.92%, compared to the previous week. Thus, the BDI rose by 66 credits compared to the previous week and closed at 1881 credits on Friday, June 7.
Let’s see, in more detail, how the dry bulk cargo market moved last week by vessel’s size, starting with CAPEs. Asia saw gains with the largest charterers active in the market. Thus the volume of cargo was increased and the rates improved. Index levels on the Australia-China route (C5) closed on Friday at $11.26/tn.
In the Atlantic Basin, the market presented two faces. On the one hand the south showed upward trends with shipowners easily finding cargoes from both Brazil and West Africa. In contrast, in the north there was a lull in Transatlantic trips while some trips from the east coast of south America to Asia closed in higher numbers. Indexes on Friday for trips from Brazil to China reached up to $25.77/tn (for route C3), while rates from Continent to Asia closed at $49.16K/d (for route C9 ) and Transatlantic round trips at $22.86K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin the week started sluggishly due to the Poseidon week, however in the middle of the week an increase in the number of grain and mineral cargoes led to higher numbers. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $34-36K/day (ECSA delivery), Continent to Asia at $23.5-25.5K/day (Continent delivery) and transatlantic round trips at $9.5-11.5K/day (Gibraltar delivery).
On the other hand, in Asia the market showed an increase as Indonesia and Australia had cargo flow while the market was also helped by the good image of Latin America. Indonesia-Far East round trip rates moved to $16-18K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the week started sluggishly too with charterers starting the week aggressively offering very low numbers. As the days went by the picture improved somewhat but the downward trend continued. SMXs rates for travel between S.E. Asia and the Far East went to 16-17.5K/day. Further north, in the Far East the market lost ground as both the North Pacific and China showed low cargo volumes. SMXs rates for North Pacific (NOPAC) round trips moved to $12-13.5K/day, India round trips to $12.5-14K/day and Atlantic (BH) round trips to $ 12.5-14K/day.
In the Middle East Gulf and West C. India the market declined further but some cargoes with immediate loading dates restrained the decline in rates. Forecasts for the future are not particularly promising since fewer and fewer cargoes are expected. SMX rates for Far East trips ranged from $15-16.5K/day (from Middle East Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle East Gulf – West C. India at $12-13.5 K/day and trips to the Atlantic Basin at $ 7-8.5 K/day.
In the Atlantic Basin and especially the US Gulf started the week calmly but progressed upwards as the flow of cargo to Asia was continuous. SMXs rates for transatlantic trips reached up to $13.5-15K/day and to Asia $21-22.5K/day. The ECSA region showed improvements as we saw increased demand for both Asia and transatlantic trips. SMXs rates for trips to the S. E. Asia-China moved to $25-26.5K/day and for Transatlantic trips (Mediterranean/Continent ) to $19.5-21K/day.
Continent moved on without much action and only a few cargoes disturbed the calm waters. SMX rates for round-trip local trips moved to $9.5-11K/day, for trips with SCRAP cargoes to the Mediterranean at $10.5-12K/day and to Asia at $17.5-19K/ day. The Mediterranean continued its downward course since all the attention of the involved parts of the water was monopolized by the Posidonia. Only in the western Mediterranean did we see a bit more action leaving a sense of optimism for next week. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $15-16.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $7-8.5K/day and into the Mediterranean at $ 8.5-10 K/day (outside war zones).
In the Handies market, in Continent the market continued to move slowly with charterers taking a wait-and-see attitude to keep demand tight and rates low. Rates for the largest vessels in the class, for round trips reached up to $7-8.5K/day, to the Mediterranean with scrap cargoes at $8-9.5K/day and for Transatlantic trips at $6-7.5K /day.
The Mediterranean remained flat thanks to increased demand for fertilizer cargoes from the western Mediterranean. Conversely, grain and cement cargoes were scarce. Larger vessels rates (over 36K tonnes DWT) for intra-Med trips moved to $6-7.5K/day (delivery at Canakkale), to Continent at $6-7.5K/day (delivery to Canakkale), to the other side of the Atlantic Basin at $6.5-8K/day (delivery to Canakkale) and to Asia at $12-13.5K/day.
On the other side of the Atlantic, in the US Gulf the market showed more activity and rates increased. Thus many vessels found some employment and the capacity offered decreased. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between $10.5-12K/day and to Asia at $14-15.5K/day.
The East Coast of South America (ECSA) region moved at low speeds as it appeared that interest was more focused on the Poseidon events than the physical market. 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 $18.5-20K/day.
In Asia, the south progressed without particular changes thanks to the premium paid by the jobs from Australia. In contrast, demand from Indonesia was limited. In the north the lack of cargoes and the increase in the number of vessels available led to a drop in rates. Further west, in the Middle East Gulf and W. C. India, the market rose after several steel cargoes were strengthened. 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 $11.5-13K/day.

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